RentI mentioned earlier what I consider to be the characteristics of a good tenant.

They're all different with different market dynamics, unique rental characteristics and probably different investment yields.

I'm currently getting my education in note investing and built a little financial model to run performing note deals through and develop offer pricing using my cost of capital plus risk tolerance based on various characteristics of the deal: Lien position, borrower credit, payment history, asset LTV, seasoning, loan tenor, etc. etc.

There are a few inland CA markets that seem to share similar characteristics to Sacramento (see below).

At the same time the GRM could be from the upper end of the range if the subject offers superior location or building characteristics.

Characteristics: 1) It represents a transfer of assets or services at a specified or determinable date. 2) The firm or individual has little or no discretion to avoid the transfer. 3) The event causing the transfer has already occurred. 

Given the range, I am looking in cities that are more affordable but still appealing characteristics/demographics like Columbus, Cleveland, Indy, KC, Memphis, etc.

Having an LLC that is either disregarded for tax purposes of taxed as a partnership(pass-through) does not change the characteristics of the income.Therefore, passive income earned in an LLC will still be considered passive income to its ultimate owners.

I may have the opportunity to buy this property and basically name my price, but I wouldn't do it for an unfair price.If the rental analysis works out close to a fair market price I might be able to do it..I am thinking that this place could be exceptional for this area as far as a non-seasonal vacation rental because it has great summer and winter characteristics. 

Listen to BP Episode 294 and #AskBP 075 to get ideas of the characteristics that a good property manager has.