They have been living for free and they still can't save up some cash and reduce their debt position.

Question is...will the amount I'm saving on rent (once I own my apt) be enough to compensate me for the reduced RE prices from an impending RE crash in LA?

By doing this it will greatly reduce your risk and stress.

look at the interest rate, currently rentals with conforming mortgages I'm paying roughly 5%,,now the question is, would I rather have cash and be paying the interest (less tax deduction, which reduces that to maybe 3 1/2%), or no have cash and save that interest cost.I personally will take all the 5% money I can get, I won't do a deal with a cash of cash return of less than 25%,,,so yes, I want to make that and pay the 5% (as noted really 3.5%) in interest.If the deals get to the point I'm could only make, say 15% cash on cash, and I was paying 10% on my money, I would re-evaluate thatEveryone's situation is different,,what's right for me might be wrong for someone else

This reduces unnecessary service calls for items like a flipped breakers, reset buttons, etc.

Don't be afraid to replace the players and let them know about the high standards you expect and that should reduce some of the problems.

It doesn't matter if you reduce 10 times the price can still be inflated.

Values hold up best in the closer-in areas; that is just the way planning has supported higher density to reduce urban sprawl.

Me, I prefer my 2% appreciation and the reduced amount I have in rental vacancies and bad renters.      

You listed Mortgage Ins - implies you expect to get a conventional loan with less than 20% down; I think you need to research actual financing that might be available before assuming the numbers you did.Expenses related to a loan aren't of concern here for the building's expenses (although the loan debt service will reduce your net cash flow).