If we sell that same property in 30 years but on the 30-year, 3.125% rate we make a total profit of $497,000. 30 years down the road and $38k richer via method A but the Coc at the top of the report is only 4.27%(our report) for this one opposed to 10.97%(the one you can't see) Coc return for option B.Let's look at one more metric that stuck out to me, that is CoC return for year 30. the 15 year/2.5 loan(the report) at year 30 generates us with a 41% Coc return, which seems like an astounding number to me even though I probably couldn't fully explain what is happening.

If your estimates are WAY off and you can't make any money, simply explain that after inspecting the property, it needs more work than estimated and you're only able to pay such-and-such amount.

California is known for being tenant friendly, so you should be able to find some free legal help that would answer some questions.Perhaps a better approach would be for you to explain why you're worried about this?

I'm pretty sure I've explained before why Detroit PM's are so terrible (spoiler: low rents and unique challenges = 2x or more the work of most markets for the same revenue).

Can anyone explain to me how these property tax reductions are calculated?

You have to explain that clause with them in the purchase agreement anyway.I have never had any negative consequences by being honest and forthright in all my business dealings whether commercial or residential.

(as you can see the first bullet is not the type of tenant we dream of and the second 2 are short term ones generally which do not help your bottom line.)I think this in a nutshell explains why many out of state investors come in hoping to make money on their rental and are then sadly disappointed when it sits vacant for long periods of time.  

It does a great job of explaining the difficulties but also the benefits. 

@Rob B. please explain how the relationship between a "business" and a "client" is different from a "landlord" and a "tenant."

I think it might be good to explain a couple of differences in loan.