I would **strongly** suggest you talk to a CPA or lawyer who does inheritance.2) I suspect you could do a 30 year Lease Option or something like that whereupon you do sandwich leases to the tenants, collect the rent and pay him the mortgage amounts.

*After going through inspection it was determined the whole building is still knob and tube, it was highly suspected but wasn't fully determined until the walk through inspection.

This is somewhat due to it being our only SFR in our rental inventory but also because it used to be our home and therefore was purchased to be a good home and not a good rental property (versus the other rental units were purchased to be good rental properties).I suspect you could find duplex to quad that would cash flow upon purchase in Linda Vista with realistic Cap Expense estimates but the cash flow would not be like OOS. 

So I suspect that we are going to have a higher than average rate of tenants that end up exercising the option.

I suspect what you'll find is that the better the property performs, the worse this investment returns versus a traditional set up.

I suspect you are about 5x too low on that one, but I sure as heck wouldn't calculate it as a percentage of gross rents.1% expense increase, 1% rent increase, 1% appreciation rate?!?

I have a lot of questions, and I suspect most of them have been answered on here many times over.

I know on the CA BRE website there is a tab to turn in those you suspect of unlicensed activities ...AS you know on other threads my business is funding A and D all over the country..

They could not get a loan and I was not going to finance them (I suspect they may not have been able to make the payments and  lost the place).

Anything outside the norm is usually suspect, if not it certainly should be.