Option 3.)My grandfather currently owns 2 properties in York, Pennsylvania and gave me an offer to purchase his homes below market price. wonder would this be a good investment or stay away? 

Hey Steven Luttman the four unit has gone good, it cash flows nicely right now its actually on the market and I have gotten numerous offers.

CA real estate value is almost at a top it might move up a notch or two or just stay put before the trough ......If the ROI is less than 12-15% an equity manager will tell you staying with something liquid and headache free.

Jade,Stay close to home would be my suggestion.

Definitely stay away!

There are numerous examples of this on the site here.

Buy the properties subject to the sellers loans staying in place and have the sellers carry a 2nd mortgage for the balance minus what you agree on for a down payment.

Also if you are doing flipping, in which case I suggest you look into Series-LLC and you operate each flip in its own child-series (if not clear why, ask for more details).I spent numerous hours researching from multiple sources the whole LLC question and asset protection matter and all the rabbit holes it opens.

They simply can not find a better product for the same price and so they stay.

My income is $140k gross (software engineer), my wife currently stays at home with our child, but could go bring in $30k-$40k if needed.My question is if we put the $150k down (with $100k via a HELOC), rent out the back, and do some airbnb ($100-$150 in the area) with the extra rooms in the main house.