Purchase prices are considerably lower than Los Angeles and other cities in SoCal but the rents are still high enough to produce high cap rates compared to the rest of the state.

I recently found my first deal through the marketplace and one of the guys I had talked with on the phone prior (thanks Jorge).

It really looks great at this price point when compared to others. 

I looked at their gross rent number of $55,000 (which assumes 100% occupancy), saw that the prior 3 years showed gross rents of $50,000, and calculated a vacancy rate of ($5,000 / $55,000) 9%. 

Whilst it is not possible to guarantee completion of repairs prior to closing, we are giving it our best shot.Thanks in advance for the advise.

Getting a referral from a fellow investor is OK, however that contractor may be good for the referee, but could be not so good for someone else.Contractors are special individuals - they too are chasing the buck and trying to get the best deal possible.You may want to write specifications  of what you want done - once you know what you want you can better compare bids from workman.I have found that meeting real people with real tools at a time they are buying supplies and materials at Home Depot 5:30 - 6 am picking up stuff to do their daily work is sometimes an effective way to find the craftsman you are looking for at a price that will serve you well.Getting referrals is OK - but how do you know that they didn't over-charge the person who is referring you to them?

We have 1 rental which was my house prior to us moving in together and getting married.  

SO do you see these charges/ prior to the PM sending out the final for security deposit disposition.. if not something is lacking..The charges by the PM for turns  seems unruly and high.. a inspection charge.. what the ???

-prices may drop quite substantially in a down market compared to properties in class A neighborhoods? 

So they got what they wanted which was a chunk of cash up front and I got what I wanted which was a good return on my invested capital.The seller had a recent appraisal on the building so I offered them a bit less than the appraised value and we worked out a rent that is comparable /sq ft to similar properties in town.The seller gave me yearly rental increases and I gave him the option to buy the property back from me any time during the 5 year lease term because that was important to him.One of those classic win-win deals.