Send 1,000 mailers: 2% engage = 20.   40% turn into leads = 8.   75% set appointments = 6.   85% "sit" = 5.   60% are viable potentials and submit offer = 3.    

Potential returns look decent …PS- the jump you saw could be some sort of hotel/ multi unit property coming online.

Given potential tax law changes, consulting a professional is crucial.

Real estate generates a return through cash flow + appreciation.It appears that cash flow is negativeAppreciation appears to be 0% over 2-3 years based on zillowThe question is what you beleive the future will hold for cash-flow and appreciation.Cash-flow will likely continue to be negativeThe question is what do you think about the appreciation for the bay area.If the property continues to stay at $850,000, it will likely not be a good decision to hold on to the property.If you think the property can appreciate to $900,000, $950,000 over a few years, then it can potentially be a good reason to hold. 

@Dillon Vansickle, first I would go to the listing broker and others, potentially from surrounding markets, to give you an idea.Second, most sellers are crazy today in their valuations.  

Hi BP,A deal that I'm currently working on has the potential of involving 2 separate partners, not including myself.

Landlord provides tenant (at tenant's decision) the option to limit potential damages by agreeing to pay 2X rent as lease break fee".

My best advice for getting started is to learn to run your numbers thoroughly and then practice on potential properties that you see listed. 

Potential upsides and downsides?

Generally, higher cash flow means more potential work and more monitoring of the property, two things you'll do much better if you invest near you.