Low rent tenants are willing to live with more flaws, fewer extras, and won’t be as demanding about discretionary maintenance and improvements.Fewer evictions.

I know that kind of talk can sound dangerous, so I'm hoping the wisdom and guidance here can help make it happen!

As your life cycle reaches maturity and lower energy you begin to use 1031 exchanges to move from active management properties to passive management properties and from lots of properties to fewer properties (consolidate).5.

Too dangerous for a flip.

Your dreaming if you think PM's will manage crap holes in dangerous areas for the average PM rate of 10%.The PM's giving special rates such as 8% are typically for A areas where they do not have to do much.C areas have lot's of turnover and many times have damage and multiple attempts at collecting rents.There are special PM companies that deal with the slum areas and are good at that kind of stuff but I have seen them charge 12 to 14% to deal with it.

I see that the rules DO NOT apply to a property of 3 units or fewer, where the owner lives in of the units.

In my market it takes significantly fewer units than that.

In fact most private lenders buying these loans in the secondary market are offering to restructure the loan to make it affordable.2)  Homes with borrowers in default are almost always poorly maintained, adding to a sense of general decline in the neighborhood.  3)  When these houses do go back to the lenders, they are fixed up and resold, improving the neighborhood and restoring the tax basis (they are almost always behind on the taxes).4)  If lenders are going to have their contracts voided then the result will be that fewer people will make loans and they will be at a higher cost.  

Hey I'm just trying to be honest and play devil's advocate here about the dangers of all the tenant's rights stuff in San Francisco, but if you want to go sell the concept of San Francisco investment property deals/properties/mortgages that typically break the 1% rule, have low cap rates, and will often be cash-flow negative out the gate, some non-trivial percent of these mortgages which I will be writing, go for it, thanks, and keep writing posts like this.

Everyone says its so easy to invest out of state, but without the right team in place it can be financially dangerous.