So if a property doubles in value you property tax will only go up by the capped maximum (I think 3% but it may be 2% - I used to know but do not really care about the 1% difference now).So at your income you will be challenged to find a place that you can afford with a safe reserve. 

@Connor HeimMost small dollar units of property that you mention can be expensed under the 'de minimis safe harbor' by making an election on your return.A competent CPA will ask for a ledger or detail of the supplies account and fixed assets accounts to make sure everything is where it needs to be for tax efficiency.

Considering there are many safe construction loans out there, do you really want to get involved with this?

Operate a safe business with high standards, have sufficient insurance and you will do fine.

Sac looks more safe than Morgan Hill/Gilroy from earth quake perspective =)

I'd be happy to discuss your transaction if you're interested.

arm lengths transaction one of my wifes old clients calls out of the blue ( one reason I think being an agent is really helpful long term)  anyway he said remember that property you sold me 15 years ago.. well I stopped paying about 7 or 8 years ago.. they never foreclosed and just sent me the deed.. but its in tax default and I need 20k or I am going to lose it in a week..  

If you want to be safe, keep anything they left for a while in case they come back for it.If all you had was verbal comment that they are leaving, you may need to go to court for possession of the unit so that you can legally throw out the items they left.

Do you close creative deals such as wrap-around-mortgages, or subject-to transactions?

I follow the core/satellite approach to portfolio diversification where the bulk is in very safe/conservative assets which allow a smaller satellite portion to be in riskier.