Gulf front investments or the majority of condos will net 2-5% return and slowly increase each year.

Over the last ten years, but particularly the last 3 years, values have increased at a far faster rate than rents have.

As mentioned it can be difficult to get another FHA loan if you have one currently unless you have a job transfer, family size increase, etc.

Recently I've realized that most of the PM companies rent out units at or below market rents and allow for an unnecessary (IMO) turn time which of course translates to increased vacancy rates. 

A bit long on the payback but add in any value increase to the property from doing it, including its increased attractiveness to condo conversion down the line, immediately better cap rate, etc...and it could be worth it.  

However the rent is low and once I increase the rent to market value, it will be around 18% Cash on Cash return. 

Increased Transparency in Commission Fees: Investors will have more clarity on what they are paying for.

Bought at below retail, financing via FHA to lower downpayment and increase ROI What was the outcome?

Putting the money into principal INCREASES your risk in 2 ways.

If the city believes the unit was rented in the past, they will force you to legalize it as they no longer offer demolition permits and San Francisco's ultimate goal is to increase housing stock.On a side note, you can read more about TICs as an investment strategy by searching the BP forums.