Assuming no other variables are at play (minus a W2 job), if you were to call me up, I'd probably give you high level information related to the rehab and how taxation works when you owner occupy a rental.

Granted the bay area is a high demand/low supply rental market so you will generally see a lot more interest in general.

It was referring to the fact that all real estate markets are different, and following.. the employment, income, demographics, supply of land & housing, desirability, demand, etc. in that particular local market will determine what happens there..

this since, all that there is not much supply, home prices are not going up rather I have noted that they are stable. 

He needs to have connections with other trades in the area, vendors, etc.Last piece of advice, make this person get all supplies, materials in his or her name, not yours.  

http://www.har.com/content/newsroomHighlights are:Single-family home sales fell 10.2 percent compared to October 2014, marking the fifth and steepest decline of 2015;Total property sales dropped 12.1 percent (7,026 units);Total dollar volume decreased 8.3 percent to $1.8 billion;At $271,648, the single-family home average price reached a record high for an October;At $205,000, the single-family home median price also achieved a record October high;Single-family homes months of inventory climbed to a 3.5-months supply versus 2.8 months a year earlier;Townhomes/condominium sales dropped 17.3 percent with the average price flat at $196,242 and the median price down 1.0 percent to $146,500;Leases of single-family homes rose 4.1 percent with rents remaining unchanged at $1,708;Leases of townhomes/condominiums jumped 12.4 percent with rents sliding 5.0 percent to $1,510.

This is going to be expensive if I have to contract just to get supplies.

You're asking a very specific question that could easily involve a massive number of variables that could be VERY important to what answer is given. 

The nursery industry which is huge here in Oregon ( supplying CA builders ) it tanked. who works in the nursery farms  ( Hispanic labor) what happened to them. they could not longer rent the C class.this played out in Las Vegas  PhX  central CA. 

There are just so many variables here.