If my lender is offering debt at 4% and Cap rate is 6%, I can stop right there and see that I can harvest a 2% spread since my asset is generating a return higher than my cost of debt.  

:roll: BTW - this stain is a lighter pink because she borrowed my $200 carpet steamer I lent to her as a good deed.

I took off some on cold north side and find bats all the way down to the bottom of main floor walls ,,,nestled in the pink fiberglass put in on renovation maybe 20 years ago.

Be very careful with this though, if you have shorter term financing like I do prepare for a down turn, I have no idea how much values fluctuate in your market, and if your note need to be renewed in a down market, you better have enough equity, or a pile of cash to bring in, I have seen many investors collapse because they harvested too much equity, I limit my portfolio to 40% LTV, im running about 35% on 21 properties right now, so i feel pretty safe, I was through the last crash and saw some guys i thought had it figured out crash and burn, just a word of warning. 

If that can be found and harvested in the Bay Area it can be done in any market!

I just purchased a duplex  with a vacant apartment that can get $950/month (current rent for the other side) but the bathrooms look kinda outdated and pink.

It's just a recipe for either a failed business venture, a pink slip from your boss or divorce courts.

But the pink 1980's laminate kitchen countertops are an eyesore.

I’ve been driving around Harvest, Toney, and Madison to get a better feel for the market down here.

I'm favoring selling and harvesting the equity in this property for other deals.