Given these things, in a normal circumstance, I try to increase rents 1-3% annually believing that is generally how much rents will increase LONG TERM and that a tenant's pay will likely rise in that range each year on average as well.

This could lead you to believe another state would be preferable but it is my understanding that CA will want the $800/year even when the LLC is OOS.  

However, I do believe your focus on cash flow may not need to take a detour just yet.

Hospitable I have heard all good things, I know they were running a 14 day trial period for BP users I believe.

The increasing demand for housing absorbs everything that comes on the market in our segment.So, don't believe everything you hear on the news.

I believe the success is 1. cute factor, 2. price in an expensive town 3. demographic that is underserved. 

But I think they'd be around $4,800 (conservative estimate).Seller is also claiming there are no common electricity at all- which is hard to believe, considering there's common gas, water and sewer. and most likely a common area electricity.

It costs around $1,300 or so, and I believe (at least for me) the peace of mind that it is done 100% correctly is worth it. 

@Edgar U. if 5K mailers give you nothing, don't you believe there should be another way to go about it?

If you believe the fed will keep cutting you may want to analyze if a variable rate would be viable for your situation.