Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean?

Meanwhile, our existing properties are well-capitalized and performing well in solid, steady markets.  

right I answer this for Cody actually, I know you know this stuffs Steven :)Just telling any newbie investor, it's possible for 7% interest-rate mortgage to perform on the same level to 2% mortgage rate performance if one plans accordingly.What do we need to do ?

Sell for $225k, use that cash to buy better performing assets outside of California. 

But to have that kind of interest rate and still be a negative performer is a big red flag when you can take a bunch of profit off the table right now tax free.The idea is to make the greatest return and cash flow with the least amount of risk. 

@Dennis Mannon I've got access right now to a condo under 100k that would perform well as a short term rental.

We have experience managing our own and other people's STRs, so we know we can make this perform well over time.

There are a number of expenses (in addition to the mortgage) that you will need to cover plus all of the time and there most likely will be future repairs and maintenance that you will have to perform as well.

You will either have an angry tenant stuck there or a tenant who simply moves out and you have to go after for performance of the lease.

That puts you in a much better position to grow more and faster.The only time I think arbitrage is OK is when you have already built up a performing portfolio and want to try a revenue stream that is different.