I look for cashflow to service the debt, repairs, cap ex, taxes, and insurance while the equity grows, my taxes are decreased, and rents are increased to make more cashflow. 

You have to adjust your expectations to match current reality, which includes higher mortgage rates, higher prices, more expensive taxes and insurance, more competition, etc.

Out of my 32 properties, I’ve seen insurance rates drop by up to 40% on renewals, and property tax increases are finally slowing down compared to the crazy jumps we saw over the last five years.

As far as I know the prices have continued to be stable or go up.

When I filed a claim, my insurance company denied it because the property was under rehab and not rented.

The bay area has many old houses so be aware of what it will take to being them up to code and meet insurance requirements.

@Kenneth Jenkins you forgot to mention owners that expect a PMC to use contractors off Craigslist that are unlicensed, NOT insured and rarely have acceptable experience/skill - but, they quote the "best" price.These same owners will sue a PMC if using these types of contractors results in a tenant lawsuit.

He said most of his buyers are on a fixed income, can't qualify for a traditional mortgage, others have good, stable income but low credit scores and low income on paper and etc.  

This is also accounting for my increase in insurance costs due to adding insurance to the ADU. 

I’m told taxes and insurance is lot and will rise each year and cash flow is hard to come by.