He gets 12% annual interest on the unpaid debt. 

My plan would be to replace any large capital items upon purchase.I am using $6000 annually for cap ex, and $3000 for maitenance.

$/Unit: $72.5k$/SqFt: $103The list says that the owner annual income is $41,760 and expenses is $9,784.Thoughts?

My guess is that your partner did not file CA state form for the LLC and did not pay $800 minimal annual tax.

We may not have another bubble 'pop' per se, but it can't go on forever with 10-15% annual appreciation.

That leads to fewer maintenance costs and longer occupancy.Each of those factors will absolutely effect the long-term performance of any property - not just a Turnkey property.Lastly, if you want to just cut straight to the chase about returns,  expect to lose 50% of your rents annually and reflect out over 10 years.  

There is an annual fee to get the house inspected.

I believe they only have annual subscriptions in the $400 range, but they may have monthly I am not positive.

The crazier thing is he will get pretty darn close to 100k gain, which is a annual return of 44%. 

What the specific amount of income you want to create (monthly cash flow or annual amount)?