If you’re looking at retrofitting to separate heating for each unit (like furnaces or mini-splits), you might be looking at a higher upfront cost, but it can shift utility expenses to tenants and improve your NOI.I’d factor in boiler age and efficiency when analyzing deals and if it’s near the end of its life, negotiate a price reduction or a credit.

My partner was messaging back-and-forth with Ryan, he said to put in the LOI and gave us the price to put it in at.

To answer your question, if the home is priced at market rent, we are seeing our rentals lease out in 25 days.

Additionally, in my market, a lot of these properties are located in areas where price-to-rent ratios are extremely favorable.

I don't see much waterfront in that price range of 650k or under.

I think because it's so competitive to survive in California, and being accustomed to high prices, they view the rest of the country as opportunity. 

I found this one on realtor.com by doing a search that only showed me properties with asking prices no higher than $150k

There are significant advantages to investing here (lower barrier to entry, much better price to rent ratio's, etc. etc.).

You get a Capitalization Rate (CAP Rate), which equals your annualized return by dividing the Net Operating Income (you had gross in your narrative) by the purchase price.

Obviously if I intend to have a top performing STR in this market, my buy box will allow for a much higher max purchase price, but I wouldn't feel comfortable with shooting for the max if there aren't clear ways to beat these competing properties.