While the property tax "subsidy" of prop 13 (not really a subsidy as it only means the government takes a little less of your money...) is nice, you also have to take into consideration that the PRC  (Peoples Republic of California) is one of the most landlord hostile states.  

. , @Hugh Ayles is right. in consideration of resale, you want to install a professional heating/cooling system.

Do some reading and then speak with a few of the providers to get a feel for what will work best for you.There are specific tax considerations and rules, so be sure to consult with your licensed tax professional once you have a strategy in place, but before you actually embark on that strategy.

Thanks alot guys, I will take everything in consideration...It's like what one of you said about a family squabble, it's just that...YOU GUYS WERE GREAT!!!!

Will certainly take all your input into consideration.

Below are the numbers on it:ARV:  $340,000Acquisition: $175,000Repairs: $60,000 to $70,000Lead Source: ReferralOther good things this week include - collecting another $4,000 non refundable option consideration (50% of 2409 Ruth) which shall be added into the cash number by next week (when we cash it; Rentshare got it from the tenant's account last Friday but it will be deposited into our bank account by next week); - we launched the Real Estate Investing Joint Venture School last Tuesday (lesson #1 is about three lenders you need to buy houses).

There were bugs, but between our input and considerable input from 21st Mortgage (as well as others) they, in my opinion, got it correct.

This means no extra rent applied towards a downpayment (which is financing) as part of the lease and no rent incentives tied to the exercise of the purchase option.you need to ensure your tenant / buyer is capable of affording the house and obtaining a mortgage (from a traditional lender) when/if they exercise the purchase option;the option consideration could be the downpayment (this may no longer be true under Dodd-Frank and/or SAFE act ... best to ask someone like @Bill Gulley) in which case you do not want to make it too large (3 - 5%).  

There are a lot of considerations you would have to make before deciding to move forward, but if it wasn't on your radar it is an option.

The costs of an offering are considerable for this type of offering and the logistics will make it virtually impossible to use them for syndicated offerings.