Most of the academic research I've seen suggests that its becoming more and more of an option as a "starter home" that gets people out of apartment buildings.I'd be curious if you have heard/read something else.

Homes are clearly outdated and need things taken care of like lead paint, new windows, paint, etc. 

So if you purchase this outside of California, you must have your local infrastructure in place to help you take care of the property. 

Accounting practices say the value of an item is its value at purchase until you are selling.

It's becoming less and less of an issue but there are folks who like to keep their business private when selling a property thinking it may give the other side a competitive advantage. 

The IRS does not care whether it is a conventional loan, private loan, gift from a friend, sale of stock, savings, robbing your child's piggy bank or wherever you have access to money. 

Take care.

1.) renting as is- Usually folks who are interested in the house are not going to care for the property.

Your work will be at the beginning, being careful with your money. 

I want to be super careful with OPM.