Thus if you do sell it in 3-4-5 yrs ... there is no tax on any profit.

Savings rates have changed a ton in the 5 yrs since the original post. 

Shortly after moving in, this house (built in 2006 so 18 yrs old) styarted having issues - cooktop working erratically, they replaced it with a high-end (GE Profile) new one.....Dishwasher started leaking, replaced with brand new GE Profile. 50 Gal water heater went out (elements) they replaced.So in just 6 months, they have spent about $5000 on me.

Now he'll pull in lets say $600 in mth 61 for the next 25 yrs.

It is a lot harder to get into CA real estate these days, then even 10-15 yrs ago.

I work as a Private Investigator for the state of California and a semi retired social worker of 25 yrs.

I got paid  10% for 3 yrs.  

I do not have large reserve of capital although do produce enough through my current properties to Fund 200k of repairs over next 2 yrs. 

current tenant (4 yrs at the house): My bath ceiling paint is peeling.

If you think rents are going to grow 20% per year, every year, for the next 5 yrs, you will look beyond today's value, and start pricing in the future value.Really, most buyers are backing into a desired IRR and/or cash on cash return, and backing into a viable purchase price.