Ideally each would have a tiny kitchen that is modular and customizable for their needs so that big kitchen mentioned above could be eliminated and 2 more units added. 

Landlord judgments can also make it hard to rent in the future, something worth reminding them as a reason to work with you to pay the debt...Another option is offer them a cash settlement verbally for a tiny portion of what is owed.

CA is non-judicial for all but a tiny percentage of foreclosures.  

You may also want to find a local and trustworthy contractor to get your quotes and pay him for his services.I myself am a hands-on kind of person and since contractor quotes are all over the place sometimes, I need to know the costs of things myself such as materials and the quantities needed.

That avenue is preferred especially when dealing in smaller quantity of units.

I would like at the highest numbers first because the lowest are going to be a bunch of tiny/ unusable pieces of vacant land that nobody wants. 

Instead of Quality it seems like a philosophy of quantity...

Or how about that tiny home design contest Raleigh sponsored a year or so ago?

Then, since it is a live in flip, the utility costs you had which would have been elsewhere anyways along with the fact that you paid down a tiny amount of principle in year one is just extra gravy on the deal.

You already posted this scenario.. while it can happen you will have to hunt for it.like all things real estate returns price for risk.. rare is there high cash flow AND appreciation.. and tiny appreciation like 3% a year might look good but its not real.. you buy a rental that will make 12% under your scenario you need to find a 50k house that rents for 900 type thing .. which you can find.. so 3% appreciation it goes up a whopping 1,500 a year.. but in reality it stays at the same value.. since the next investor wants to make the same money you are.. only way values increase substantially is rents go way up.. and in cash flow markets rents ( which is a good thing) are generally very stable with not a lot of movement up or DOWN.But for your exercise check out small little towns in PA  and outside of Pittsburg and up towards Erie.. you will get the cash flow i bet.. appreciation only on paper not in reality.