Then I submitted a lower offer of the same ratio as before.

Not only does this lower your taxable income, but it also allows you to support a cause you’re passionate about.

or an income play which typically provides lower yield because they typically inherently have lower risk

Yes the inventory is much lower than the City, but there are 2-4 unit properties to be had, and with good numbers.

This implies residential units can be built at lower costs than ADU additions and provide better return. 11) adding an ADU to SFH can make the SFH fall under rent control.

Flipping can be cost-effective due to lower entry costs and growth in neighborhoods.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

If your property is up to par you won't really have many maintenance calls except minor stuff such as plumbing clogs which is more likely to happen and requests to turn the AC up or down which you can do on your phone but other than that pretty hands off.Vacancy depends on location and your Padsplit property score the more comfortable you make your property (mini fridges, tv's, outdoor area) the lower your vacancy rate but you can expect about 10% vacancy factor in a Padsplit friendly area (centrally located, easy access to public transportation).

Overall, though the cash flow in my market may be lower, the strong appreciation has made for a higher total ROI and I've continued to buy here. 

thank  you Laura -I do feel good about the compensation as they have been our only boots on the ground as we just can’t use “ friends” anymore ..I also found out that the $500 monthly fee is lifted once the place is rented and she goes to a much lower rate / hourly when things arise .I just thought it was a unique price structure and have never heard of things executed as such before .Thanks again for your reply-Christian