Highly recommend you connect with him if you haven't already. 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

The high season is May/June/July/Oct.  

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

What do you do to revenue predictions to account for the fact that some owners don't set prices high enough to the market rate, or set them to high and don't get booked as much?

@Kyle Klineall great questions and this is the challenge right now with both prices and rates high. 

but if they cannt afford 20% down ($60K), they are a high risk of not making payments; and there are legal costs to foreclose and get your property back

You can't give up even after days/months of not producing results, which is highly unlikely. 

are you looking for short term loans that payoff every 6 to 12 months or longer termthat will determine which direction you may want to go in. probably not enough to do much in CA to start unless you want junior position which is highly risky for you.

What is the rate/structure of the loans on them - is this Hard Money - high rates?