Now it is a single-family long-term rental.

You may need to focus on long-term wealth building instead of short-term cash flow. 

So why obligate yourself to a long-term relationship with someone with less than a perfect application?

Yes, it is not a problem to wait for the lease to end before selling, but I am also concerned that if the market is slow at that time, the vacancy will be too long.

If you plan on staying long term lower down payment is not as meaningful as it is if you only plan on staying for a few years. 

For a property like this, even in California, I would anticipate at least a +7% CR.Additionally, betting on appreciation is speculative and not the best approach to long-term investing.

Where it gets murky is how much the IRS will scrutinize your time longs and those of your vendors. 

I highly suspect maintenance/cap ex over long hold to be closer to $400/month than $132/month and it will in no way be $0/month and leaving it out to inflate the return for any reason including it has just been rehabbed or is new construction is absurd and misleading.   

A GOOD property manager can go a long way, and potentially save money/discouragement that you are enduring.

It's a long short, but I figured I'll ask.