If you have super leaky apartments a system may struggle to keep up with the demand as all the conditioned air leaks out.

You get two things out of this - it buys you some time with them staying (and it sounds like you hoped/planned on some tenant stability), AND they get used to paying a bit more.Now you can't just show up and demand a security deposit - that has to be accompanied by a lease.

If the cost of the mezzanine debt is less than the cost of the equity partners, for example, if equity partners demand a 15% return, and you are able to secure mezzanine debt at 10% to fund some of the "capital stack", your overall return to the equity investors will be increased as the overall return requirement is lowered and the total equity needed to close is reduced.

Although each deal is unique, I've been starting to demand a personal guarantees tied to costs that go above and beyond "value adders"

There are several other factors to consider as well, usch as population decline in certain markets which causes less demand as well.Must adjust, yes, but don't fool yourself, rental markets can and will have "slumps".

If I was your Buyer Agent I would demand a copy.

I would think that since many of these California investors (I'm assuming that they're mostly newbies) would be more like homeowners than experienced landlords and would tend to demand a prettier rehab than is justified based on the business.

It's always a combination of location and market.My college rentals are in demand as enrollment increases.My low-income rentals are soft as businesses/government cut back hours and renters move back in with relatives.Unfortunately there's a steady supply of investors bidding up foreclosure prices in prime rental areas, sacrificing cash flow for expected appreciation.Maybe they're geniuses but it's not a bet I'm willing to make.

Next, people will complain they are not making enough money to sustain their cost of living and will demand a minimum wage increase..it's a vicious cycle that will and can not be stopped until the market is able to determine the appropriate wage for the job.

Campus property will always be in demand as you mentioned, but many would prefer and recommend properties that are cash flow positive.