As rent increases with inflation, the rest of your numbers will follow.If buying a condo, thoroughly review the financials and make sure reserve account balances are in line with the most recent reserve study.  

Consider, Cost to turn the unit, cost to advertise, down time, and chance next tenant would be any better than this one.I think your late rent issue a few times is small compared to what you could end up with.M2M and let her ride. do rent increase in Spring so your chance of turn will come at better time for you.

It doesnt mean they are making money, what is does mean though is property prices are increasing because of it.

While it's possible that you have different standards for yourself, do you think it any less safe an area?  

So I'm assuming both building A and B are configured to be able to sell as separate units sch as individual meters, kitchen and bathrooms, in other words they meet your areas zoning code standards to be sold separately.

Rents have increased here quite a bit but much less inventory from what I've researched.

Looking to increase my knowledge in real estate to for both personal and financial gain.

I just checked the Zestimate for our old house in Modesto (standard disclaimers about Zestimates apply...) - it's still barely more than half of what we paid for it in 2004, and less than half of what it appraised for in 2006...So, it's very possible to lose money in Northern CA if you buy at the wrong time, like we did.

Any new laws coming down about increasing property taxes?  

If the price drops, then the cap rate would increase and by your explanation would mean higher risk.