This is why it is important to know your time horizon ( estimated years before you sell the property ) and have a cost reserve stable estimate ( projected capital items to replace and expected labor and material costs to do so in what years ).I find many investors do not calculate for this and overpay for a property on the buy side.History of the property is key.As an example say a 20 unit multifamily building the current owners shows lower expenses.

I sense a $100+ over-ride breaker flip on the horizon! 

This is assuming you don't have a predetermined time horizon to sell the house.  

So with that time horizon is how I look at bay area. 

Plus, their current landlord wasn't renewing the lease because he wanted to rent their apartment out as a vacation rental since the Superbowl (it was in NOLA that year) and Mardi Gras were on the horizon. 

But, as a buy and hold investor, I have a long term horizon.

Ergo from 350 rentals I am down to 6.. and the only thing I have on my horizon is building a 180 unit A class apartment here in Oregon which will have very few subsidized renters if any.. and if they are in there they will mine their peas and cues.. landlords here simply will not take on the risk of these types of tenants.

The last conversation I had with maintenance about the flooding was more along the lines of "we are getting ready to tear this building down" rather than "we've heard back from a couple contractors and are getting ready to remediate the issue" so it doesn't sound like there are any solutions looming on the horizon. 

Hard to make a house work out with short time horizons most of the time, even without borrowing costs and bank hassles.

I have a long term horizon but I don't want to spend my hard earned cash if the real estate market is likely to fall 50% in the next few years.