However, if they have lived in the property over 12 months, they are going to be protected under the new law (AB1482) and you'll need "just cause" to evict them (unless there's an exemption you qualify under). 

Lots don't bother to read and see they don't qualify.

As you mentioned you are fresh out of school with limited savings but as an owner occupied rental property owner you can qualify for lower down payment requirements (somewhere between 3.50% - 5%) and the Bank will take into account the anticipated rental income as part of your income so you will most likely be able to afford more than you think.  

My aim would be to financing via a 203K loan (I do believe it will qualify), rehab the property (adding another bedroom and as much add-on sqft as we can, and after cleaning up the lot, subdividing it into two .45 acre parcels to either sell at a later time, or develop and place another property.

Pretty much you qualify for the ARV upfront like a typical purchase loan (lender reviews credit, income, down payment etc.) plus you submit a contractor bid for the work that will be done.

I don't have the 20% equity to qualify for a HELOC or home equity.. 

Scaling up to me leads to success.I am in your same position,and I joined one of the big education REI groups.Starting out FB adds,Craigslist adds and bandit signs can help you scale up.Eventually building a team that includes an acquisition manager to bring in qualify and accept leads for your business.I have a CRM and access to send post cards or yellow letters to different situations.I have targeted pre foreclosures,out of town owners,etc.Always have a sign in your current projects too,people are curious some of my best referrals have been through my own projects neighbors.You have to do some research to see what works in your local market.Keep up with what is working and what is not.KPI.Scale up at your pace,you are successful!

Then I took it to my attorney for review and tweaks (as I am not an attorney and am not qualified to practice law) before we put it into service. 

And then told us what he thinks we are qualified for...not what he knows but what he guesses.   

I have qualified for both 3.5% FHA and 5% conventional.