Hello,My girlfriend and I are new to San Diego CA, and are very interested in real estate investing.We have only been here for about 10 months so we lack geographic/ demographic knowledge.

I am not familiar with the laws in your geographic area and will suggest you familiarize yourself on your city's and state's tenant's rights, specifically landlord obligations of habitability.

You are right with your explanation of cap rates being a direct reflection of investor sentiment, I couldn't agree more.

@Ashish AcharyaThanks for that great explanation.

@Mark Trebor,Thanks for your explanation. 

Thanks for this tip and for the explanation.

Not that you owe them an explanation, but you could point out to them their rent is already below market, while also explaining you'd love to keep them as tenants.

@Marcus Auerbach, thank you so much for the explanation

That's the explanation I got anyway.

@Kurtis GreenGreat explanation, and entertaining.