Reminder:Ground improvements qualify for bonus depreciation.This includes various landscaping.Roads and external parking areas.Sidewalks and pathways.Fences.Utility systems (including the installation or improvements to water, sewage, drainage, and electrical systems).Outdoor lighting.Rec facilities (like playgrounds, sports courts, and swimming pools).And more.It's a big category for depreciation/bonus depreciation that we love.

Thats what I would do next and you can really just see what the numbers tell you (and look at different rate/refinance scenarios how it would play out in the next few years)

Fast decision-making played a crucial role in this successful deal.

4) Due to all of the above, high chance they start playing games with other tenants, leading to bigger problems.5) What happens if you have to part ways?

I'd look at when the next unit lease expires and you can either...Delay closing until it's expired and vacantGive them another offer that's less enticing to not deliver the unit vacantWhen it has to do with financing the playing field is pretty level, every buyer will be able to get more competitive with a vacant unit

Remote ownership will be my primary play as I want to keep living in SoCal. 

You want to play?"

Ultimately, location and demand will play a big role in how it performs.

They got in the game when rates were low and it was easy to find cashflow plays. 

I would play along and let the neighbor know that you are sorry they need to sell their home for these health reasons and offer to buy it for half what its worth.