While one can argue it is speculative and may not be advisable, it is nonetheless a valid strategy. 2) For foreign investors, it's an indirect play on strength on US dollars.3) Sometimes real estate preserves values better than other more liquid assets (e.g. cash).

@Brian SinghI actually don't know if Walnut Creek is falling or the reasons, though I speculate it has to do with the economic fallout from COVID.

But like I posted earlier, until we get some details from Lynn, we can only speculate. 

I read all these rules of thumb and realize they do not apply at all for California real estate (specifically Greater Los Angeles).I find it frustrating that it seems the general opinion is to invest in your home state first and then branch out across borders however with the overinflation of real estate prices in my area I don't see it feasible to pay such a great deal of money for so little of a property/no cash flow especially since its not my objective to speculate on appreciation.So far from my reading and learning I have decided I would like to focus on SFR/Multi-family.

Both are speculative investments.

Talk to a California lawyer.My speculation as to what he/she will say:  You can put it in the lease, but enforcing it would be a crapshoot, at best.

You're speculating on something you can't control.

He still has not failed to pay anyone.The question of whether he should have to rely on his friend for that last 5K could indicate poor planning on his part, but I won't speculate.

It is interesting to speculate the amount of entrepreneurs who would enter into full time world if this wasn't a concern. 

This is not a investment property it is a loser that can only rely on speculation to be able to cover the costs to maintain.The property appears to be in a market where rents can not be high enough to make for a good investment if investors place any value on equity.