First, you'll find that what they consider to be the market price for their properties is well above what the vast majority of the houses in the area go for. 

If you’re honest from the start, the seller knows what to expect and you avoid any potential legal issues.

The inspection will highlight everything that’s wrong with the property, and it’s vital to fix these issues first before tackling cosmetic updates.4.

Here's an example of the landlord laws issue I'm referring to -> "Justice for Renters Act"  This is coming up later this year on the CA November ballot.

. $50 to $100k properties need maintenance and hide other issues.

I know of the property and the owner's issues so this was an easy move for me.

He now owns a major commercial dry-wall company. 

I had a few issues: many providers did not have umbrella for CA residents, some providers did not cover CA RE, one (my existing) did not cover CA vehicles, some only would provide coverage if they had the standard property insurance (I did not want to change all my insurance), virtually all (including the one I went with) would not cover me at the coverage I desired (I was looking for $10m policy). 

Need advice on this issue.

Major defect.