@Nick Pisano when you are saying of softening demand do you mean fewer renters want to live in them or fewer investors are interested in purchasing them? 

I certainly would not accept some ridiculous excuse that the pm let their criteria soften, and I would certainly want to hear more than that the pm is now on a "watchlist" by the turnkey provider.

It will create about $350 in cashflow and I know that if the rental market softens, I can lower rents and still pay my private lenders and cashflow.  

The prices on condos and townhouses have softened quite a bit, and I think that will continue for a while.There is a lot more potential income in a single family vacation rental than a condo or townhouse. 

Construction costs are still high and rents are softening.  

Those command a higher price and, in my opinion, will stay rented even when a market softens.     

Or just waiting until things soften..?

I think the rental market in Sacramento is really strong right now, and having a tenant in there while you fix the parking situation may help soften the initial cash flow burden.As far as comps go, I would simply make sure it is an apples to apples comparison as far as the property type goes.

We will be in better standing once it “softens” compared to last recession.

Here's some recent stats for the market: The median price softened to $305,000 (down 7% from summer).The median price is currently 8.9% above January 2016.Sales volume was stronger in January than it’s been in 4 years.