Essentially, your rents are held artificially low, so that the management company can tack on their own fees and the total comes out to something that sounds reasonable.   

I think the prices are artificially constrained because of the inability to develop new housing stock to meet the demand for housing. 

The more tenants, the more problems and damage and maintenance.So, for me - the ultimate would be a multi-family building next to a university with grad programs in law or medicine, with small studios.You might want to target your ultimate tenant - then look for properties that would work for them.

Next time, also get estoppels with the seller and tenant signatures so you're all on the same page about when rents are due, how much they are, and how much security deposits are owed.Take it as bitter medicine.  

Got hold of the tenant, and his reply: "I was going to call because I had water coming out of the medicine cabinet".

People can take medicinal marijuana by other means than smoking.

At the moment, interest rates are artificially being kept low.Should new investors worry?

CA is still attracting tons of top tier talent (engineering, finance, medicine, bio-tech) who earn a high enough wage to afford a quality life in CA, which in turn drives prices up.You less frequently hear stories from the engineer/medicine/bio-tech families .

A combination of foreign cash investors and the growth of things like biggerpockets have increased the demand artificially.

how long till we get medicine to fight for it?