The 1245 property (think personal property and bonus depreciation) is recaptured at ordinary tax rates though… so the new property must have an equal amount or more 1245 property. 

And the reality is  with most of CA being uber competitive as long as there is no collusion at the auction most of these homes would bid up to 70% or so everything being equal..

The builders up there are definitely not equal although they will all claim their cabins are all "rental ready".  

At a bare minimum, I would require a written lease agreement and a standard security deposit equal to an entire month of rent.

How to you properly charge the tenants seasonal usage (high in winter/low in summer) and when there's not equal gas appliances between the units? 

One discount point equals one point of the mortgage’s interest rate.Other fees you may have to pay at closing include attorney fees, recording fees, escrow fees, and courier fees.

So my point would be that the appraised value isn't always equal to actual value on a purchase appraisal.If everyone is month to month you have a lot of flexibility to go back to them and say, "Hey, we just got the property tax increase for the year and this will necessitate an increase in rent to $X,XXX/ month.  

Your current asking price for rent is equal to your mortgage.

One point equals 1% of the loan amount, so on a $100,000 loan, 2 points would be $2,000.

For primary residences, taxes paid equal 4% of the fair market value of the home times the local millage rate plus any other local district taxes assessed, such as for fire or police, but with a school district tax credit.