You just have to understand that it's arguably more hospitality than it is real estate. 

I mean, were talking CA here Carlos, arguably the capital-market in the US for real estate standing on perceptual vs utilitarian value.

Arguably one of the best weather in the Peninsula... something about the tail end of the fog meets Californian sun and shielded by the hills from high winds... 

It has it’s own airport, multiple shopping centers, great restaurants, a beach with boardwalk, and arguably the best aquarium on the West Coast.

It's not THAT much more, and will come with way less deferred maintenance, and less headaches, and (arguably) be more desirable to incoming residents. 

Rental rates are dropping and is arguably the least landlord friendly area in the nation.

@Aaron MoayedHi Aaron,I can only speak to my personal experience— which I Broker between Atlanta and Los Angeles for the entertainment industry.Los Angeles historically has been an appreciation play whereas Atlanta due to its significant filming and production and the migration of so many blue chip companies has been a great area for cash flow for my client, as they acquire properties at a lesser cost than in Los Angeles yet the rents can be arguably comparable.All that being said, it really depends on your financing structure for the acquisition.

If you focus on low percentage worst case scenarios this is the wrong business for you. 2008 was a historically bad event, and FL was arguably ground zero.

I heard some people say you should price close to the same as an STR (since arguably you could get STR rates for a furnished mid term rental).

I can remember when Hawthorne used to be a D+/C- area, arguably worse in some parts.