More difficult question that was not asked is do you get rid of these tenants property and I think that is as easy a question.  

@John Cooper, it sounds like a normal tenant and a difficult landlord.

Still, it offers solid cash flow potential, especially in multifamily properties with cap rates around 7-9%.

diversification and cash flowSan Jose, CA has been very appreciation heavy... and i'm not opposed to keeping some property here, though the multi-family / commercial real estate has very low cap rates, and low growth from what i'm seeing.

STRs can bring great returns but are higher risk and more hands-on, like small-cap stocks, while long-term rentals are stable and predictable, like large-cap investments.

So my area has sub 6% cap rates.

Or at least what are investors looking for today as far as return and cap rates?

I plan to put a $600 utility cap in the lease.

A 7.5% cap rate is definitely appealing, especially in today’s market.

page=LoadVirtualDoc&BookmarkID=6536) that capped annual increases to the Taxable Value of a property to the lower of 5% or Michigan's Cost of Living increase.