Cash Flow is going to be the hardest to find, Appreciation all day long on properties in SoCal, and Tenants will be totally dependent on how well you screen them.

A small 3 bed flat (one of 10 on the property I think) that we had been watching closely just went for 880K - around 640kUSD.

I’ve got a tenant who wants to end her lease early and she found a new couple to replace her so I have agreed to this pending their approval of my screening process.

I feel I could still use craigslist and facebook and just do more extensive/strict screenings but I think this would cut the number of tenants down severely.  

I think it makes sense i get some percentage higher than 50, or a flat fee, but i want to be equitable in coming to the decision.

Keep their security deposit and handle it according to your state's laws and replace, cleanup, and screen a new tenant. 

It's a flat rubber roof.

Should I screen/run a background check on inherited tenant?

Have you used RentRedi or Zillow to list properties and screen tenants?

Additionally, the recapture of bonus depreciation is more favorable than a 1031 since it occurs at a flat rate that is lower than the high rate most investors would pay upon the exit of a 1031.