I'm in the process of purchasing my next foreclosure and the bank called to inform me that they have to stop working on my loan because the appraisal came back stating the property did not meet C4 conditions and mentioned the place was in habitable due to poor floor covering(stained rugs loose tiles), holes in walls, urine smells and broken window panes.

If she likes to travel, then take her along to find or look at properties in new places and make a mini vacation out of it.

@Fiona Lam I also invest outside of NYC but I am able to travel often to view my properties.

It all boils down to the price you pay to purchase, the cost to make the property habitable or attractive to another buyer and what its worth to you or someone else when you're finished.    

I have rented my current house - did it this summer while I traveled - made tons of money.

With attention to Saj comment you would think it’s not a desirable place to live but for the past 5 years Portsmouth NH has been rated the best place to live country wide.http://www.nationalgeographic.com/travel/digital-nomad/new-hampshire/portsmouth-united-states-greatest-small-town/

I would argue that anything under these minimal expectations probably isn't even habitable and wouldn't attract a non section 8 tenant.

You state your financially stable, and if right now  if your passion is travel, and charity work..do that and let your rentals alone,  don't rock the boat, do a minimum increase if you want, no risk nor much worry. 

Not to mention the other tenants that paid rent in the first 4 years of ownership before they moved in.I like giving money away if it nets this kind of return.Now if they were bad residents with really poor paying habits they most likely would not get a renewal and most certainly not get the anniversary gift.

But I do hear those Californians like to travel north...I would appreciate a reference on your painter friend.