Hopefully market continues to rise while paying down principle with tenants money.I would appreciate any ideas or insight anyone has from seasoned investors. 

Rent control exists, so you would want to plan your purchase knowing that and come into it educated.

All things being equal, my parents would prefer that the encroachment agreement continues with the new buyers.My question is: is this encroachment agreement only valid with the current owner?

I can spend couple hours to educate you on some good location in East suburbs and some south burbs - you might find something interesting besides these examples.

(There are other properties in LLC which we will continue to hold), so LLC is going to stay. 

So I want to go into real estate, and I'm going to college, and they only have a minor for real estate. What do you guys suggest I should study? A specific major? Thank you!

Unfortunately I am just now beginning my real estate education, so neither of these properties were good long term investments.I currently live in the National Capital Region (NCR), but I don't feel conformable investing in this high priced market.  

Step 3: Continue with partnership because you are cashflowing.  

I reckon 3-5 years is too short a time frame to GUARANTEE continued appreciation that gets you cash flow AND a profit on sale, after taking all expenses into account - if you're paying market value, in an already hot market.

As rents rise with inflation, your yield continues to accelerate.