@Alexander Felice Thank you for the encouragement and offering some perspective!

In the future (not sure how long in future for your Silicon Valley place to legally be considered a rental from a 1031 perspective), you can do a 1031 exchange to buy a new rental property.

Then we can invite your buddies for their wonderful perspective...I'm generally OK when someone wants to have an honest conversation about project cash flow and ensure they aren't way behind / @RISK. 

Shop here on Bigger Pockets to find them.From a commercial lender's perspective, with no commercial experience as an investor, expect to be required to put a 30% to 35% down payment + Closing Costs and reserves off of the purchase price or appraised value whichever is less. 

Your perspective is very helpful.

@Jim GoebelThank you very much for sharing your perspective, your thoughts are very useful for me, I have a little break from managing everyday issues, so I was thinking to make some decisions on who is responsible for  working fire detectors, what company to hire to check detectors and other safety issues, I am going to sign an addendum/reminder that people would not use basements as a bedroom if there are no 2 exits. 

Just to give you some perspective).Some caution when using a lease option, as @Joe Villeneuve pointed out, there are several DONT'S when doing lease options.  

I love it when someone makes me look at everything from a different perspective, and that is exactly what this episode with Annie did.

@Darren Sager shares a lot of the same perspectives as I do.

@Caleb Heimsoth Thank you, it puts the deal in better perspective.