This would apply to your unit.Your biggest concern with setting the rent should be the near future. 1) Your insurance is guaranteed to go up, probably dramatically.  2) You may get an insurance assessment bill to cover the CA Fair Plan losses.

@Caryn Fischer You can sell your house to your child below fair market value (FMV), but the difference is treated as a gift.

Class A properties will generally have high valuations and lower market Cap Rates.Class B Property:A step down from Class A, Class B properties are in the 10 to 20 year-old range, and are mostly well maintained.

To thrive in real estate investing, you must maintain a firm grip on your finances.

To thrive in real estate investing, you must maintain a firm grip on your finances.

If maintaining strong cash flow and minimizing risk are more important, Option 1 is the safer choice.Good luck! 

Offering to compensate them for their time can go a long way in maintaining a good working relationship.Let me know how I can assist further—best of luck with your project!

Please note that we will be flying out to the area fairly soon.

Since getting started we have learned a lot and have built quite a few systems and processes to increase efficiency and maintain consistency within our business. 

Be fair but firm with your choices.