If you exclude all the major risks why have insurance?

(there is a small part of unincorporated Richmond that is excluded from this) High Transfer taxes in Oakland and you have to pay a city tax on your rental incomes($89 once then $13.95/$1,000 each year).

With this amount of money to spend on the design (excluding $46,600 for sprinkler system install), I really have to think twice about venturing into residential assisted living business.

I excluded most SE markets given distance from me, but otherwise saw that there are several markets in TX, UT, NC and even CA that look attractive when balancing appreciation and cash flow.

Fortunately for them, for whatever reason, their neighborhood is excluded from the more restrictive regulations and they're rental operation won't be affected.

Sounds like you're sort of doing that to some extent.Gain exclusion:The fact that a residence is rented at the time of a sale does not automatically preclude gain attributable to such use from being excluded under Sec. 121.

In addition, the renters pay something called "nebenkosten"(additional costs), this additional cost covers all insurances, property maintenance, lawn maintenance etc. they need to pay the electricity and heating charges separately: so total rent would be: Net rent(Kaltmiete)+Nebenkosten(additional costs)+ electricity/heating(paid by the renter directly depending on use)I.e 1450(net rent) + 200(addition rent or nebenkosten, which covers all maintenance)= 1650(Gross rent)So the figures I gave you does not include insurances etc: So the monthly payment I need to make the seller excludes maintenance etc, and hence 800€ is the amount remaining after everything is paid of.

To me, repairs and maintenance can almost be combined (assuming CapEx items exclude repairs and are their own class altogether).  

Bill, sorry if I wrote the initial post poorly... the due on sale clause is explicitly mentioned in the contract, not excluded :) The reason I'm interested in pursuing this deal is because I'm getting married in 7 weeks (is this real life?)

Could I send him a letter stating that all terms are the same except payee and rent amount (excluding annual lease)?