Some lenders allow ADU builds in the reno, so if the ARV has enough room, this would be a strong option.

When the properties pass to your estate, then the get a new basis based on the value at the time of your death.

I am exiting my portfolio - so this is based on the proposed sale price and hard money loan... 

The amount of rent is based on the AMI which can be found here in this handy chart:https://www.sandiegocounty.gov/sdhcd/rental-assistance/income-limits-ami/so the calculation looks like this:For a 1BR unit (2 person household) at the very low income level you could charge a max of 1/12 of 30% of $48,500 or $1,212.5 per month.Also, in the agreement that I've seen (which was for a different City in CA) there were some restrictions against students.  

Find out what is realistic, what fires you up and formulate a strategy based on the resources you already have. 

Or the other likely problem - negative cash flow (the income projections aren't addressed here, and it seems highly likely based on the financing.)  

People find their niche based on the resources they have, where they live or have connections, their stage in life, goals, risk tolerance, personality . . .

Hey Ronnie, You would need to sell them the property at 80% ARV minus repairs so they can get at least a 10% profit margin (which is more than 10% ROI because it's a percentage based on ARV not on money invested) after covering realtor commissions and closing costs.

This applies more so based on location not on or in all scenarios that is why I mentioned avoiding a CALI purchase if possible.Hopefully that makes sense based on previous comments. 

I then hold an open house/showing for those that qualify based on the criteria.