I'm in CA also, and yes, it's very desirable and a lot of people want to live here, however, it's also very unaffordable  too.

But go over the appraisal with a fine tooth comb.

Example income property ROI calculation: 7% cashflow + 3% market appreciation + 5% tax savings & benefits + 4% loan paydown by tenant + 3% inflation-profiting / debt erosion = 22% ROICompare this to a mutual fund ROI with dividend in a taxable account: 7% capital gains + 2% dividend - 1% expense ratio - 1% - 1% cash drag = 6% ROIIt still makes more sense to invest in positive cash flowing real estate, especially with bonus depreciation in the tax code for the next few years.

I thought so too. 

You may be able to talk to the tenant's case manager for some tips too.

The title lady was crying and I had tears too.   

If  I need to bring more money than that too the table I can't/don't want to do either one. 

@Ryan Martens - It's as if you've read my mind and  that you've also read all the things I discovered about their  past relationship too. 

@A Bari many/most investors will purchase their first 5-10 properties under their name, and instead of an LLC, get decent landlord insurance and an umbrella policy to cover their rental properties (and home and auto too).

As can be seen in this topic too, the “main company” OCF cares about the performance of the management company (the one you call ZZZ realty).