The third option is to sell and pay a boatload in taxes, which will reduce the amount of money you have to play with in addition to writing some painful checks to the IRS and FTB.I've been in your situation and done some commercial RE and oil investing out of state through syndications. 

Originally posted by @David Faulkner:I for one prefer to seek out the exceptions (left coastal as opposed to your tweener coast lake or river) and accept the long term maintenance and upgrades in return for the sustainable appreciation rather than the transactional drag and hassle of dancing in and out of "inventory" every 8-12 years or less (if you're J.) like you're running some sort of used car lot ... please tell me how that is sub-optimal :)The biggest risk I see in high-priced places like California is the three-standard deviation type events that can cause great investment pains. 

It's highly unlikely that he will ever sue anyone, because lawsuits are painful for everyone involved, including the tenant. 

I'm finishing up one now and it was a pain to get it. 

I also owned a property out of state and was so happy to sell it for a loss because of the pain in the butt it turned out to be.

I suppose I do.The judicial/non-judicial state list is a good starting point for limiting the pain of a foreclosure.  

IT was the most painful lesson ever.

I'm similar to your equity ratio, Aaron just with more doors.I'm paying off all the commercial apt bldgs because they are in LLCs and annual reporting is a pain.

The financing and insurance issues are a pain, too, but probably less of one than dealing with all the tax forms and tax reporting.  

So I talk tough but I have a tenant that is being a pain in *** and I have not done anything but she has not been breaking the lease; unfortunately nothing in the lease prohibits her from being a pain in the ***.