If the work was done properly, it may not be too much of a problem.

This is very helpful.If we rented our home (and purchased a second home) we could likely purchase another investment properly in roughly 12-24 months after, but this would depend on how creative we'd get with financing.Totally agree about having all eggs in one basket. 

Don't get me wrong, I feel like a good PM is invaluable and have no issues paying one their 10% to properly manage my property and take away my headaches. 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

At this point I have basically wrapped up my account with the first (dedicated professional) property manager who couldn't do her job properly. 

Much appreciate folks,Steve.Steve do you have a real estate attorney that operates in the city to give the proper guidance? 

San Diego is expensive to Purchase, maintenance and cap ex is expensive, property tax at purchase is expensive in terms of dollars (average SFH prop tax at purchase is ~$1k/month in San Diego), new retail (MLS) purchases are negative cash flow when allocating properly for expenses, it is tenant friendly in terms of regulations but this is largely due to the big advantages LL have due to crazy low vacancy rates.  

. • Regular monitoring of approved leases to ensure proper actions are taken at the leasing expiration and renewal dates. • Preparation of quarterly reports for the Board of Directors outlining the current status of the leasing program. • Coordination with the Association attorney as needed for enforcement of the leasing provisions. • Assessment and collection of costs for this program from the leased units by the authority of the Community Covenants, Conditions, and Restrictions (CCRs), $150/year.

But consider your lifestyle and what you want to have access to while you are living there and also where the tenant pool is strong and demand is high.

I understand that you cannot rent out a garage as a living space to someone else, unless properly finished and approved by the city, but could I live in it?