RE as a community we always talk about the wins.

If you can keep your overall income including the cap gains in the limits for 0% cap gains is your best bet if possible. 

I've submitted offers for clients that are something akin to what you offered and we still lost as the other buyer just offered more money than what my client was willing to spend.Have your agent find out what the winning offer was and hopefully you can get some clarity on what it will take to win the bidding war.

@Lauren Alpert They broke the lease and by most states legal standards, they should be penalized but you are in CA so all bets are off.

You have the winning hand here.As a landlord you have to not react to the "I have an attorney." 

But, without seeing pictures, I think trim and then caulk would be the best bet.  

Wow, this can be a can of worms, but it is he/she that brings solutions to problems that wins the deal and makes profit doing so.

To get the most accurate and up-to-date information your best bet is to get in touch with a realtor in the market you're looking to get set up with direct access to the MLS. 

I bet you have looked at quite a few properties in your time. 

Looking forward to collaborating with you to create success for all of us, and win-win situations for tenants, sellers, and all involved in or affected by our investing and our transactions and businesses.