Should I have waited to offer or is that normal?

In many cases the homeowners collected the insurance money and did nothing to correct any (usually normal) cracks.  

It's probably normal but I'm waiting and hoping it'll be relatively close. 

Once things get back to normal, offices open, and immigration begins, flood gate of renters will open up and SF Bay Area rental (condo, apartment, multifamily) prices and rents will explode. 

It is normal is 99% of markets to get 75% of the ARV of the property. 

I try to look long term also - I think there is a time where in my market prices will return to normal.

Conclusion: if you want to rent short-term, you have to buy in bucket 1 and your CAP rate / ROI will look like it's more normal.

Do you normally advise your clients to start on their own then transfer their properties into an LLC later?

Self managed and we do not reply unless the candidate seems like a normal person before we do a phone interview and then a showing.

But that's just me.However.  3% is the normal buyer agent commission I'm used to seeing, so if there's any possible way, including a short term signature loan to boost your cash position, that you can create a scenario where your buyer agent gets 3%, I would be surprised if he were to walk away from that.