Now imagine if they had 10 paid for rental units bringing in $8k extra per month. 

The only difference is I’m doing all 30 year loans and just paying down extra principle.

The trouble is, you're trading your $100,000 in extra retirement money to do it, so you have to do something.

I have a auto body shop that is located in a D class residential area, it was own by my grandfather, he is getting up in age and he is passing it to me. he hasn't done body work in years, he just have been renting the place out to some guys he know for like $220 a month. the utility are still in his name also. my whole idea is to come in, change things around, do the proper things, have a actually lease agreement written out for the tenants, with the new rate increase and rules, there wont be anymore of the late rent payments, there will be a late penalty, the utility will be in the tenants names,I plan to put a security system on the property, I'm new to all of this , its my first property I'm open to advice, suggestions, ideas on what I should do.

I go to networking events multiple times per month and 8 times out of 10 I never hear from the people I hand my card to... 1 out of those 2 times I do hear back, is in the form of an email campaign I get added onto!

New lenders and programs are added weekly. 

In addition, I would recommend posting your screening/income requirements in your ads! 

However, this home is in Berkeley and I am concerned about destroying historical elements and potential added structural engineering costs that could make the house attractive to a buyer in future years, along with the opportunity cost of construction now versus getting rental income from the house in the next few months. 

For instance, this 10% Vacancy that you are calculating monthly is generally passed along as an added cost to the tenant through a security deposit.

@Josh Oaten   A Short sale is pretty much a normal purchase for a buyer - other than it usually takes some extra time to get offers accepted.