d) What happens to Cali's economy?

In a stable free economy the natural tendency is for prices to go down not up.

Adding 13 units has economy is scale.  

There isn't much of an economy there.

How that impacts the unemployment rate I am unsure, but you can bet it has misguided it for the past 1-2 years.2) Severance will not crater the consumption economy overnight. 3-6 months severance, the real bleeding won't happen to end of Q3/top of Q4.

Right Amit, this problem is actually a simple mathematic equition:one wants to swap a lesser performing rental with the more performing investment.The problem is since the performance is set by market, thus the problem is becoming:one wants to swap a less performing single/MF rental property in specific regional to a regional syndication economy that's more performing.In reality, these are difficult as the home price is rising and rent growth for SFR is higher than the growth of apartment/multifamily complexes esp. if it's class A property.Solution ?

I suspect it's due to the change in the housing market and economy.  

Buy quality properties in strong submarkets, finance with low leverage, bulk up on cash reserves, diversify geographically, and you'll be positioned to survive whatever the economy throws at you.

I tend to overanalyze things, often leading to inaction, mainly because I have a somewhat pessimistic outlook on the economy and I'm trying to avoid getting overexposed. 

For a city with such a large metro area and a growing economy, I believe it’s only a matter of time before this disconnect resolves.