Cabinets, appliances, fixtures, flooring, Plumbing, electrical, supply, etc..  

872 sqftWith that in mind there are some things that are still decent:-HVAC is good, just need new heaters installed-Plumbing is no problem-Roof is fairly newNeed to be done:-Electrical needs some new work done-Demolition of the rooms -Basement - Kitchen needs to be fully renovated -Building 2 new bathroom + half bath-With a possibility of a 91 sqft addition in the back!

There are 4 electrical boxes with the 7 units (conversion house), I'm not exactly sure which box is for which units.

So that gives you some freedom and options, you do not have to do a 1031 so less pressure.Depending on how much you make on that determines what you do once you get to CA.I would simplify your life and move to CA first and rent, dont buy anything until you know and are clear on your objectives.An average 4 plex in So Cal is hitting $1.5m - really tough to make that work. 4 units in LA is really out of whack.And do the "rent where you live and buy where you rent" much better approach than trying to buy $1m dollar shack in LA.Palm Springs is interesting and you can find some decent priced properties and some work as an AirBNB so that is interesting but I would run you calculations on standard rents and not base it on Short term rentals.

Apparently, my grandma is "causing him problems because she has a/c".The electric is metered by owner (my grandma pays her portion).

FYI: Once you open a $200k unsecured line of credit with Bank A, don't assume Bank B's offer will still be standing when that hits their updated credit report.

How do I make sure the water and electric bill are all in their names?

They'll check out the foundation, electrical, HVAC, plumbing, etc.   

Long story short the same appraisal gave me more credit for a detached garage that was about half the size, not rehabbed, not rented and no electricity about 3 months ago during a different refinance.The property i detailed here obviously has a fully rehabbed garage, it's rented, electricity works, etc. 

So it sounds like the default is that it's likely normal wear & tear (or poor installation) and that I would need to pay for the tub replacement unless I can somehow prove they hit it with a hammer, dropped a bowling ball in there, etc...Separately, I can charge them for the water damage since they didn't notify me and have admitted in writing they knew for 4 months.