You also always want to include a home inspection contingency so that you minimize risk associated with unknowns that could come up and back out of the deal if anything huge comes back in the report.

This lends to going down the path of possibly providing the tenants with financing, installment contract, disguised sales, delayed closing transaction, equitable interest, refunds, lawsuits, loss of profits... etc.

Taking action is something I can do, I'm just trying to minimize my mistakes and to look for some guidance.I know time is more important than money and I'm not one of those people who expects things for free.

QUESTION 2: Regardless of the situation, would you consider it a good deal in a hot California market if the rents covered the mortgage with minimal cash flow?

At that point I can take any pet someone has with minimal risk.  

Supposedly an investor buys a property needing minimal work (think cleaning and painting) then lists it on the MLS for retail sale.

But, if it's normally unheard of to achieve 2% gross rent per month, don't delay!

Keeping track of (and minimizing) your expenses is just as important as cash flow, especially for me living in a HCOL location.

What you plan for is how minimize costs and keep the tenant customer happy, and your property in good repair. 

Sorry for the delay on my appreciation.