I just found this post and wanted to check in on your further thoughts and plans regarding your property since the lease is coming up...I have eye-balling small multi-res in the Sacramento-San Francisco corridor and also up to Chico...cap rates (5% or so vs 4%-3% in SF) have kept me from pulling the trigger.I see you have/had an interest in moving into multi-family and would like to know if you plan on going out of state or staying in California.

So, absent a true crystal ball, what is a PRUDENT real estate investor to do in this potentially volatile and downward environment? 

Just wanted to suggest some action in this very odd ball situation.

I do not claim I am an expert but I do not think anybody has a crystal ball as to what the market is going to do in the next few years so I do not like to account for appreciation when I do not know if it will ever come.

An experienced buyer doesn't have "shiny ball syndrome" this means they will not be enticed by the $7,560 a month, they will want to know what's this property going to cost during their projected holding period.

@Alexander Ball I just recently went through a similar situation.

Excited to get this ball rolling - I've been doing my research and have put together a small lump in capital to invest, leaning more towards a long-distance investing strategy with a focus on MFRs or smaller SFRs.

Because many of them are dead broke and up to their eye balls in debt just like the general population.

I've been reading and listening to BP podcasts and now that the time is getting close and the opportunity is becoming real since I'm almost finished with school, I thought it would be a good idea to start getting acquainted with the forums more and start learning what to do to get the ball rolling soon. 

The ball is back in your court to explore all of these options that are presented to you here.Best of luck with this,Chris Pre