I'm looking to build a wholesaling business around SFHs here in Southern California (Riverside County, specifically), then expand in time to MFHs, possibly commercial.

Obviously numbers always matter but it's always important to factor other things in i.e. performance of the property long term w/tenants. 

I know a lot of people have been successful using a lot of debt to build their portfolio it's just not the way I do things.

If your focus is to accommodate your mom and you can hold onto the property for a bit, I think you could definitely build equity and eventually generate cash flow from it.

There is not a bathroom in the building so unfortunately only option is a Porter Potty.

Option 2: Purchase additional properties and build portfolio I know that there are some tax implications to no having the mortgage payment to consider.

I am also nervous about it not cash flowing at all but I think buying in southern California and holding long term is an almost certain strategy to build wealth.

I have been investing in Toledo, OH since 2009 and owned 2-12 unit buildings and find they are way too hyped (read lots of guys from BP want to pay too much for them) and the reality is residents in Toledo are ultimately seeking a house with a yard and a garage so as soon as a resident improves their financial situation they move into a house.

you'd still get to make money in REI, with a secured predictable return, you'd just have to figure out another way down the line to be building equity and getting the tax benefits of ownership.hope this helps! 

I’m sure you’ll consider the taxes when analyzing deals but for me it’s sometimes been the deciding factor between two similar properties.