It would be great to get some other perspectives from people who are active in this market. 

The cash flow question is more nuanced, in my uneducated perspective.

What does that do from a valuation perspective? 

@Manny Fernandez the terms you've quoted here are extremely competitive for the current market. 90% LTC is rather aggressive from a lender's perspective at the moment-- I wouldn't think it's smart lending but from an investor's side, I would go with it. 

What I'm mainly interested in is the practicality of scenario 1, because as I mention above it would be much more desirable from a cost perspective and limit on cash out.

From a finance perspective, if you could sell it and have a lump sum of money to invest in a higher roi rental or the market it could make sense to sell.

all the real estate that I own is out of state - i don't invest in CA - mainly multifamily but just curious on your perspective when it comes to storageThanks for the lesson, i appreciate it! 

Thanks in advanced, interested in hearing all your perspectives!

I'm curious to get some perspective from folks who've gone this route for their first investment (especially those going OOS).

From an overall perspective you will still unquestionably find that The City still has more draconian laws and resources that favor tenants compared to Oakland....yes the gap is closing, but The City is still way ahead (or should I say behind) regarding this.