So you are suggesting like me tryin to by a single family residence or a apartment unit and live in one of the units and rent the rest out as a house hacking strategy?  

Financial freedom is all about buying and hold properties for the rest of your life - that's how you get appreciation, cash flow, principal paydown, and depreciation.

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. 

They then missed out on several more years of growth because they got out of the game and waited on the sidelines for things to look better. 2010 to 2012 was the period that cash investors were the players or those with IRA keep in mind investor loans were still basically non existent in those years for all those expect very well to do Investors beginners were not getting investor loans. 

I am trying to calculate my returns over a 10-year period using the rent-by-room strategy, which results in significantly more cash flow than traditional rentals.

@Bruce Lynn - I love the depth of thought you put into this—these are exactly the kinds of variables that separate top-tier investors from the rest.

No if potential buyer have given you emd than you are under the assumption this is a serious buyer and will close on the deal but he has only a certain amount of time with his inspection period so if he backs out you still have time to fund another buyer. 

During this 24-month period, the property must be rented to another person at a fair market rental value.After the 24 month period your sibling could convert it into a primary residence.

At that time I'll attempt to structure a 10 year term unless I consider a shorter hold period in which I'll negotiate the lowest rate possible to fit a shorter term more closely matching my remaing hold timeline.

Review this periodically - 3-4 times per year, and UPDATE it.