While your point about paying above market value is theoretically possible, in practice it will never occur as those factors contributing to local acquisition prices and the market CAP rate will also factor into our risk analysis (local economic trends, clientele, directional move of the neighbourhood (improving/deteriorating) which determines the level of return we would require from the venture.

There are people who have held strong as the neighborhoods have deteriorated, and there are still some surprisingly good properties.

While power was off, anybody could come along and tamper with things without themselves being harmed, weather could have caused insulation to deteriorate on the service feed cable, etc.

When a property sits idle due to inaction, it deteriorates.

.…$1,645.00* Inspect sub floor after toilet removal for sub floor deterioration.

Maybe I'm misunderstanding something but my final thought is to lose the property manager, 4 out of 16 homes occupied and 3 of those allowed to deteriorate?

If you imagine a property's income to expense ratio to look like the teeth of a handsaw, either pointed up or down (depending on your market), you want to select the tips of the points for consideration of where/when to sell.If your sawtooth is pointed perpetually upward - i.e. a rapidly growing area where property values and rents are increasing faster than the house is deteriorating - you might keep it "forever", or for a very long time, as each sawtooth tip will be higher than the previous.

They are located in Tampa, FL.When their services started to deteriorate recently, I gave them notice as per contract terms and moved the properties to a different property management company. 

If you're not going to be on the property often, you'll also want to ensure you have a good property manager to look after the upkeep of the property if you are not there to notice anything deteriorating or which may need attention.Creating an LLC in California would cost you a minimum tax of $800 every year (even if you form in another state, as you say).

You'll also want to ensure you have a good property manager to look after the upkeep of the property if you are not there to notice anything deteriorating or which may need attention.Creating an LLC in California would cost you a minimum tax of $800 every year.