If CA unemployment continues it's current pace of dropping about 10-20bp per month, it would be back at 5% by Summer 2016. 

Would it be better if I paced the acquisition more to provide a longer and stable track record?

HI Cort,Most of my lending business it out in OC and debt to income ratios for many borrowers have really been stretched and this is in an area where many people have very good incomes comparative to other parts of the US too.Incomes are not going up as fast as home prices are and the only real thing that is keeping affordability in check are the mortgage rates.Assuming we dont veer off the track of full doc income/credit/assets we will eventually hit the glass ceiling in terms of qualification and the market will in theory not be able to absorb inventory at the pace it has been in the last 2-3 years when this ramp up started Jan - Mar 2013.If I were you I would look at the cash on cash returns on the equity and the risk of the asset in the market that its in (Indio) and figure out where to most efficiently position that equity to achieve your preference of return, safety, and ease of management.What I do recall is that riverside and San Bernardino counties got hit really hard back in 08-11'.

I consider the possibility of rent control in Richmond at some point, if rents keep increasing at this pace..

The long term growth in property prices in the LA Long Beach metro is about 7.14% (1976 to 2016, Federal Reserve); so using the rule of 72, the price would or should double in 10 years.Also the 45% expense estimate is in some ways high as there are companies able to achieve 38 to 40% and rent would or should be expected to grow at at least 3% per year in LA even with rent controls to keep pace with inflation.It is sort of the nature of the LA market and some of the other markets where you essentially go long, as opposed markets like Atlanta or St.

At what pace?

To complicate things I do believe the tenant is moving out...at a snails pace.

Once the out of state systems are in place, you could acquire at a more streamlined pace and potentially liquidate the CA asset.You have options which is great.

Let's say I upgrade my HVAC to replace old if install new condensation units worth $10000 just for the sake of numbers, how does it impact my depreciationWhat section of tax returns has information about depreciation.Appreciate your inputsThanks.It is added as a separate asset in your tax asset detail and depreciated when paced in service. 

Right now house prices in Canada are skyrocketing at a record setting pace, especially in the Toronto and Vancouver areas.