I saw on tv once that they used a jackhammer to grind the crack down and out, then they poured concrete, and eventually a leveling agent was used.  

You could play it up and further demonstrate your level of seriousness by saying something like: "This offer is based on our assumption that the property contains a mix of 1 and 2 bedroom units totaling 16 rentable units, along with our initial research of publicly available information."

If you sell before they are reassessed you will have a harder time competing with similar listing with lower taxes.  

I am no expert, but what I do not see in San Diego is how we get from the present extremely low inventory levels (especially on the coast and the lower priced $800k and below market) to an excess inventory level which I believe would have to be a precursor to any significant price drop.

Starting out on the multifamily side, I suggest that you have a look at C or lower B class properties (workforce housing).

Hi @Amiris Brown If this is your first purchase i wouldnt recommend starting out with a big project like that...usually it turns out bigger than what you thought... in any case if you really like that property and it has lots of issues i would suggest send the listing agent a backup contract. these usually fall through and you might be bae to pick it up at a lower price. also fnme- homepath stopped negotiating high price reductions about a year ago.. but they usually have an automated system that reduce the price once a month..also something very important to consider- if your'e planing to buy this property and keep it as a rental- because it has lots of mold you have have to get a remediation certificate that the house has been treated and clean. otherwise the tenants can hold you liable and take you to court if they feel the property  still have mold ,that can be very costly... 

I plan to pay off the mortgage and cancel the Flood to lower the costs to a minimum.

The reason for these increases in both appreciation and rents is a massive migration of the middle and lower class from the Bay Area.

By the time you finish reading through that you should have some better answers to your questions, along with new questions to push you even further to the next level. :-)I'm personally in the market for buy and hold.

Looking to dive into buy and holding rentals with lower risk rehabs, that offer upside in pricing flexibility.