Questions I'd have if I were in your shoes would be based around how the CAM expenses, management, taxes etc are going to work. 

It's a slow and steady wins the race game, but it is not and should not be for everyone. 

Based on the above projections I receive, I then "run the numbers" to see where I project to end up each month. 

In other words, they should not be paid for plumbing until they are completely finished with that trade.

payment based on performance?

I will continue my homework based on your recommendations.

If you are going to do this type of business make sure it is in an area you can visit or make yourself familiar with, you have someone that is representing YOU at the table like your Attorrney, and you don't make decisions based on "we need to wrap this up". 

You'll likely want to start with reviewing the requirements under Prop 19 for retention of the base assessed value when adding a child to title, and also look up the rules for a basis step-up at death. 

@Katie BustosWhen you buy a home with a rental unit, like a garage apartment, how you're taxed can change based on how you use the property and if you rent to family or others.

In your case, if you have $100,000 on the sideline I don't know if I would necessarily invest all of the capital unless it is in at least a B neighborhood and play the long game, rather than invest in the more volatile markets and swing for the fences.