Both options work, but cheap and simple to start may be appealing.

It would also be simple to produce a buyers list coming from our sales department.

I'm sorry to say it's not a gimmicky "3 simple steps to get the results you want tomorrow"; rather, it's real work and takes commitment.  

It seems like a simple thing, but reaching out in BiggerPockets about getting started as a real estate investor is a great first step.

My simple mind needs to keep things logical to understand.  8-)DanSacramento, CA

I also assumed that smaller tile would increase the labor cost due to the extra time required.

If in about 3-4 months I go to refinance to pull my cash out, will the appraiser be able to justify a higher valuation based solely on the market rent increase?

But let us say I would be satisfied with about 10% annual return after 10 years, the house will have to appreciate (keeping the calculation simple) by (10-2.4)*10 = 76%.While I am very positive about appreciation of RE in silicon valley (specially SFHs), but 76% appreciation seems unlikely to me.

It talks about where their is demand, where rents are increasing and decreasing.  

Honestly I thought giving the DOB 6-7 months was enough for such a simple thing.