Example: 75% LTV appreciates 2.5% in the first year and you have a 10% return on your investment and a return that is positive in inflation adjusted dollars. 

One thing I do is use quality paints from sherwin Williams, in flat or matte finishes. 

This is basically because of inflation. 

the market is tough right now will properties in an all time high, and living in Cali doesn't help with rising rent prices, here we have to play the equity game and "hope" the properties appreciate faster than inflation 

It is over inflated! 

I will give you ideas on how you can overcome the number 1 obstacle preventing you from acquiring apartment buildings.I have acquired over 1,000 apartment units (and I did it with no money and bad credit) and I shared how I did it, here on BP:Part 1 - https://www.biggerpockets.com/forums/55/topics/690349-from-bankruptcy-to-1-000-units-part-1-thru-the-dark-tunnelPart 2 - https://www.biggerpockets.com/forums/55/topics/692382-from-bankruptcy-to-1-000-units-part-2-rising-from-the-ruinsPart 3 - https://www.biggerpockets.com/forums/48/topics/695243-from-bankruptcy-to-1-000-units-part-3-how-to-build-an-empireWho wants to go first?

It's a little harder to get those returns now because prices have continued to rise, but you can still buy on the MLS at Harbor Lights on Maui for 130k and make around $400/month cash flow. 

Example: 75% LTV appreciates 2.5% in the first year and you have a 10% return on your investment and a return that is positive in inflation adjusted dollars.

But @Joe Norman is correct, as the loans get more "seasoned" your credit score will rise. 

@Melba ChambersLooks like a solid deal.Do you expect any appreciation or rent rise as the years go by?