I'd be more inclined to give them an option to buy for 24 months with Option Consideration of 3%.When they exercise, you can 1031. 

Also add this into your primary consideration as to whether they can afford the place.Lastly, a two-year lease might not mean anything if they just bail on you at some point during the agreement.

Screw heights.

Equity is always at risk.They are primarily an appreciation play best used by investors with considerable cash reserves.

Hi,I have a small 2/1 in Seminole Heights that I am looking to rehab to make ideal for a first time home buyer.

When a big company relocates it's headquarters, it's often based on where the new CEO lives more than any other consideration. 

But that is very tight...we just bought a very similar property but were doing a 1031 with considerably more capital...I dont know everyone says dont wait for a market shift to buy but i dont see how it makes sense to keep investing unless you have a ton of capital...

lets take in consideration the house is in the middle nowhere and it takes months for the house to sale in the area. 

We borrowed some cash from my parents to purchase a home for $13,000 with approximately $20,000 held in escrow for the Cleveland Heights Point of Sale.

This needs to be taken into consideration for any CA property that has experienced significant appreciation.My own opinion, versus the above is simple fact, is that I would keep the RE but use more leverage than you are currently using.