I will caveat that the ones that I know focus in So Cal, so I'm not sure of the intricacies of the Bay, but I would suspect similar issues. 

Investors that are looking to offset their investment costs can typically expect to cover the majority of operational and carrying costs, but those seeking positive strong cash flow and ROI can find limited cost saving inputs. 

If the seller were to carry the $500k down, could I give them the majority of the LP pool on top of whatever terms I negotiated with them?

My business exists specifically to help close deals with deceased owners/probate issues all the time all over the country.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

We have some rental properties in Section 8 and its becoming very tedious to keep up with all the maintenance issues coming up on regular basis.

I ran thru those small little issues and made sure that were fixed to my satisfaction before final payment.

In addition, you should give written notice that you are taking over management of the property to the renter to help with any future legal issues (such as proper notice for an eviction).

Many of the major insurance carriers that I've called say they have never heard of such a policy.

Saw a house with a For Sale by Owner sign in a yard with tall grass and after some drama, we have a house.We have dealt with long term rentals for over 15 years, but not aggressively ( keep them rented and do some improvements ).This "old house" needs, updated HVAC, new roof, new kitchen, some broken windows, upgraded electrical, water run off issues...I'm just starting to clear the house out with multiple dumpsters and starting to get quotes.