You are already paying rent, so pay it to yourself to increase cash flow and accelerate savings for the next investment. 

It even states that the lease “will repeat itself” but doesn’t specify terms like figures or percentages for rent increases.

It’s worth considering the trade-offs between the stability of income and the increased oversight and hoops you'll have to jump through.

You can find SF properties that already have in law suites, garage units, etc, and now legally rent those, so it should increase the appraised value significantly.

Purchase price: $169,000 Cash invested: $33,800 Property was recently renovated to increase the value of the property and the cashflow What made you interested in investing in this type of deal?

If the market value mentioned above is accurate and the “initial” loan balance hasn’t increased by rehab funding, I wrote above that the proceeds are just a couple million after closing costs and commissions.

However, San Diego is an extreme case.However rents increase fast in San Diego.  

These rules have increased risks by making it difficult to get rid of poor tenants that pay their rent.

The mortgage would stay under the seller's name.The buyer could then rent out the unit, renovate, etc. to increase cash flow or make more money.But aside from a possible "due on clause" being called by the mortgage company, what's the benefit to the seller?

When we create our business plan, we also include our exit plan.We'll only proceed if we can clean this up, acquire new tenants at higher rents so we can increase our NOI, which in turn should reflect our cap rate and profits.Since this asset class is new to us we will tread cautiously.Scheduled to preview tomorrow.