If however you're concerned with cash flow & potentially selling your property later w/ either a small appreciation in price or at least no reduction in value then you need to be careful where you invest in the South Suburbs.  

Once we shared this with the investor he was able to negotiate a $40K price reduction.

So unless you are already operating a STR in the city, you could be out of luck.Did he say how they were going to go about the reduction?

The asking price is 8.5M after 500K reduction. 

Rates are up and rising; sales are down; price reductions are becoming more common; and houses are sitting unsold longer.  

I'm sure that providing electricity is a condition of habitability in CA, and a landlord can probably be held liable for an unsafe condition that could have been foreseen or prevented, so I'd probably offer them a rent reduction for the days without electricity, or to put them up in a hotel until the electricity is turned back on, personally.

@David Cook, I gave a rent reduction once for a maintenance issue because of the inconvenience after that the tenants started looking for any reason to ask for more reductions.

That puts demand on rental and housing ownership on the West coast, but a possible reduction of demand for those things elsewhere.

In addition to pop decline, there seems to be a reduction in median home values and household income.

We shall see how those reductions go this year... to be fair this is a challenging business for tax attorneys.