Her interest rate is currently at 7%, with a little less than $200 of her mortgage is going to the principle.

However, after 3 year of appreciation and paying down the principle, I'm looking at about 60K in equity I can use to fund my next deal.

Nevertheless, the reason Angelenos are openly disdainful about this whole thing is that city leaders are, once again, distracted by (the extremely uncertain prospect of) shiny, whirring objects polluting our skies, while ignoring the most basic, everyday ground transportation needs of regular Angelenos, 99 percent of whom will never ride in a flying taxi.

I was finally able to find a home based on some the principles you explained and through some different techniques to make me stand out.

Your numbers look ok except you cannot deduct the 1st year principle paid. 

Either way - I would support the petition for landlord relief on principle alone.

I’m telling my partner we should put that towards principle.

When you run the numbers out (principle, interest, taxes, insurance, appreciation, depreciation  write-offs, etc), having more properties with less invested in each is the most profitable. 

I will try to be as objective as possible.

There are some caveats i.e. principle reduction isn't liquid and only a benefit if values don't decrease, things like depreciation are recaptured at sale and you pay some tax then but if you're in a high quality market, buying and holding for the long term, etc it may still make sense to consider below the 8% CoC level if your confident in your numbers and have appropriate reserves.