(Not your fault, maybe some of the people at fault here are the realtors that you have worked with that were unable to explain their value to you). 

I really appreciate you taking the time to explain.

Can someone explain in simple terms what prop 33 means in California?

They will have 12 month leases, so over the course of the year you will be explaining to them your plan to rehab their units and bring them to market rent.

So explaining why an investor (you) is preferable in their situation is critical.  

Others might be fine with taking risk, but least by doing this a person can get an idea of what might go wrong.e) Legal document analysis: it will usually take a few days to go through the legal document properly, as almost inevitably there are tons of gotchas that either have to be explained, or mitigated with a side letter.That is the very short summary of what I do.

They should write you a letter explaining the error and that they are going to charge you the additional $400 now.

Has your business broker explained that the majority of businesses put on the market do not sell?

Quote from @Mark Faulkner: Very well explained!

I know there are a ton of books and videos out there to explain this.