In his December essay, UCLA Anderson senior economist Jerry Nickelsburg looks at California’s most recent economic data, including trade through California’s ports, international arrivals at Los Angeles International Airport and San Francisco International Airport, state government finances, residential construction and employment.

@Kawika Burgess, oh, to be that well off that I could afford to negatively cash-flow tens of thousands of dollars until appreciation meant that at a break even point had arrived - IF I sold right then! 

At the end of the year charge/refund the difference in the actual charges.Use the previous method but break out utilities for the units on each shared meter instead of the total cost for all meters.Break up each bill as it arrives. and divide it by units on the meter This would add a lot of overhead to the work load.For water, gas and trash service I think it would be acceptable to share the costs based on sqft.I just dont know what the common practice is and my experience isn't in commercial offices.

[Not legal advice].The reason is, Lenders know what you paid for it, and they will expect a length of time to elapse for you to value-add to the property (whether you need to or not), so that THEIR new appraisal arrives in the same ballpark as you are expecting.

The property in the condition I arrived was $675,000.  

You have arrived at a great place to educate yourself and connect with other investors.  

He arrives 1 hour late to meet me the first day but I let it slide.

Instead, I used a spreadsheet to arrive at a value and presented an offer I was comfortable with (if financed).

As stated previously, I appreciate the annual inspections since the tenants usually clean before they arrive.  

That should allow you to arrive at a reasonable rent price.