You need to complete your own Annual Property Operating Data (APOD) on the properties.

Martin@Al Williamson@Andrew WongI own a couple of SFR's in SF that are on annual leases.

Note that I annualized this to make it fit, as well as make my life easier.

I also look for a minimum of 8% CoC return.In my market there's not a lot of appreciation (maybe 1-2% annually, if that), so I'm looking at cashflow and loan paydown as being the primary wealth generators.

Instead of focusing on the attitude of your 7 year tenant and the $200; read a few of the many horror stories off BP ... and also know that some landlords deal with annual annual and biannual relets.

So is the property a 6 cap on existing rent and then there is additional percentage rent if sales go above a certain number annually?

It produces over far over 6 figures of rent annually for a little duplex that probably could be rebuilt from scratch for less than it brings in from rent in a year. 

To put it in perspective, what I will get on a cash-on-cash return basis on a large multi-unit property in the Sacramento-Fresno range will dwarf the gross rent I received on an annual basis from the SF apartment building. 

If these numbers are in the ballpark, you have sufficient cash to buy 4 more similar properties, and increase your annual net income to ~$80K (that offers a lot more breathing room).Since you purchased your properties 2-3 years ago, I'm assuming you have very LOW rates on your notes; and therefore, I would not be in a rush to pay down these loans.

They have an annual lease and their deposit was roughly equal to 1 months rent.