We basically execute a form of the BRRRR strategy by targeting communities that require significant renovations or improved management to bring them back to profitability and then we are able to use the increased equity when we exercise the option. 

The public, after all, will decide where to live, where to open and run businesses, and how much to pay for CA property.I happen to agree with Kelly's view that change in perceptions doesn't get "accelerated" until there is an "incident"...Just as the middle-aged man who, after surviving a life-threatening heart attack, finally begins heeding his doctor's advice to eat better and exercise more, Californians won't think twice about changing where they live unless (or until) an "incident" occurs which dramatically impacts their current way of life.

Don't try to time the market - it is a futile exercise.

They spend less than 25K every year but still live a fun lifestyle (traveling several times a year, woodworking, exercising, buying more expensive healthy food).

I'm totally new and haven't gotten my first property yet, but want to post my opinion for comments on my train of thinking, as I consider this an exercise for me to learn so take this with a grain of salt:Your cap rate is sub-6% on this dealThe "2% rule" falls at 1.15%The numbers look pretty weak.

You'll probably have to compromise on at least one of those.You may want to chat with @Jacob Thompson about his experience as he went through this exercise locally quite recently.Good luck!

Reduce risk, save money, and get exercise.

Exercise caution for yourself and your personal property.Take the time to familiarize yourself with the operation of the egress windows, even if your bedroom isn’t in the basement.If you see something unsafe please report it ASAP and let your roommates and guests know.

I own a 3 Flat property on Chicago's Near West Side and I am planning on increasing rent in the following manner:(Rent increase is due to market rents and a hike in property tax)3bd/2ba, 1,150 sq ft ApartmentCurrent $1,150Market $1,500+Renewal $1,350I am being gentle as I prefer to receive $1,500 but flipping the unit could cost more due cleaning and repaint costs (20+ft ceiling).

If they did not give you an answer if they were going to exercise their option or not, then they did not honor the time is of the essence clause and you had the right to exercise your option to walk away.If it were me, I would be reading that contract and comparing what the contract says to what actually happened and what can be proven.