Almost forgot to mention, our payments went down by about 60 bucks a month.

Roll your funds over to an ira like mentioned (vanguard, fidelity or Schwab).

Besides the up front cost of the offered purchase price, title insurance, the tax bill, and annual property taxes, what other potentials costs should I be aware of (also mention any negatives to be aware of).Thanks in advance.

I understand most of these laws don't apply to families.Most city websites in California don't mention maximum occupancy limits.

BasicallyHow much profit can you make with rentals (apartments, duplexes, etc), and regarding loan products, how much capital would be required per year to reach my goals mentioned below? 

My sister-in-law mentioned that.

@Patrick Mosca - I have 4 rentals in Bay Area, so let me share my view on the market...As upstairs mentioned, it is always "too expensive" to buy here, but this is around it feels different...

Should not be that difficult.I read also publication 551 to know how to compute the basis.My case is simple as I do not have a mortgage, but still they do not mention brokerage fees.

Not to mention if you are using an agent it won't be long before they fire you and you need to spend more time finding a new agent who may or may not be better than your current agent. 

I'll definitely look out for the cities mentioned, which I would have never thought to consider actually.