I do wonder just how many people are going to leave California permanently from all this.

Happy to answer any questions or concerns. 

My concern is that a lot of younger, inexperienced and unsophisticated folks get fooled into believing that their hard earned money is going to "buy" property in these kinds of arrangements (i.e. believing they are not "throwing money away on rent") whereas throwing their money away on rent + even more money should the option fail is a better description of what is actually happening. 

Or is your concern about cash flow related to your lender?

If the tenant prevails, the record is sealed permanently.  

.: Quote from @Jonathan Small: You've raised some valid concerns about California, and it's true that the state faces significant challenges.

I feel like social media will be more permanent..  

There are risk so to gloss over those risk for the sake of selling mentorships is concerning. exactly Joe.. 

However, a lot of concerns can be mitigated with looking at their past rental behavior in a lot of different settings.

As far as rate is concerned, you can usually go about two points over the current rate (less closing costs for a seller financed deal so there is no real expense there) You need to make sure the borrower can cover that.