These are the details about our house.Purchase price: $855,000Current approx value: 1,100,000Current monthly mortgage payment: $3100 /monthProperty taxes ~ $11,500 /yrRents in the area for a similar house: $3200 - $3400Given the numbers, I understand that this would not qualify as a good rental property but given the crazy real estate market in the bay area we are worried we would not be able to purchase again should the market appreciate at the rate it has been in the past if we sell this house now and live in an apartment for a few years.

I knew house was worth at least 200k once renovated and my realtor confirmed the value and made a detailed list of what wanted to do and what was going to cost me. 

I would have a lawyer hash out the details. 

Marc asked for advice, and if he chooses to take an interpretation of the law that is contrary to public view and hurts him financially, that is entirely his prerogative. 

So we stuck with the plan.Looking back I wished I got it even cheaper, but I can't go back and at this time we are in a joint business deal working on our first flip with seasons flippers.We found the flip house and have been getting calls for other properties we are currently looking tying to get in the view a 5 unit, the owner however doesn't want his tenants to know he's looking to sell. 

Hard to really get into this without any specific details related to the financials regarding each house, but I’d start here...If you need some liquidity, I’d run the cap rates on all my rentals and identify the bottom 3 producing rentals.

Jack I have direct experience with this property type in that exact area, PM me and i can go into details in private.

If you are viewing from your phone, click the menu button (3 lines at the top left) and scroll down to alerts.

I would consider Airbnb for it, because while tenants have a short term view, airbnb clients have an extreme version of that, and considering the location, it makes a lot of sense.All that said; your point is well taken, I wouldn't have thought of looking into those factors.

To give an estimate on the whole project, we would need a LOT more details.