@Chris Good logically, it depends on the Class of the property/tenant.Class A property/tenant: annually BEFORE lease renewal, to make sure they are taking care of the property and you want to renew.Class B property/tenant: at least annually, maybe bi-annually depending on "vibe" from tenant.Class C property/tenant: at least bi-annually, maybe quarterly. 

AND The landlord notified the tenant in writing that the tenancy is not subject to the “just cause” and rent increase limitations as specifically described in Civil Code Sections 1946.2(e)(8)(B)(i) and 1947.12(d)(5)(B)(i).

Having an 8% rate expectation is fine b/c that just means conservative investor underwriting, but most things right now are winding up in the high 6s on the low end (well qualified borrower, sexy property like you describe), mid 7s on the high end.

It's a B class LTR townhome.  

Quote from @Ken B.: Looking to airbnb in Big Bear City,Ca.

I'm mostly buying value add properties in Sacramento, focusing on Class A and B locations.

For new home B, It will be 7.5% for 550k. 

There are some foreclosures if you have $20,000,000 in cash or maybe you let the lender take those back, but then you get class B office with 50% occupancy. 

B/C in the day were where the largest client for that counties title company they insured our properties the day after we recorded the tax collector deed.. ( about 60 days to get it) and boom we resold.. never had an issue with hundreds upon hundreds of these our company did.. 

On the other side if you have B/C class units with a better tenant profile requiring the additional money could make better tenants shy away from applying.