At some point, you'll have to replace roofs/water heaters/ furnace/ AC coil/ upgrade kitchen and baths and the rental income needs to be able to support it.Property analysis should include PM.

There is TONS of helpful and well-educated people on BP, including myself, though my expertise lies in developing and rehabber, I am knowledgeable on many things in REI so don't be afraid to connect with me and ask away. 

Some of the things I would like to include. keeping in mind the property is in California.I would rather not rent to smokers but If I must could I charge a smokers fee?

Do we accept putting additional cash into our first deal or do we keep our eyes open for another deal.Original Offer:Price: 153k ($31k into the deal)Anticipated rent: $2,000k/monthOperating expenses: $9.4k / year (includes management, cap ex, vacancy, taxes, insurance, etc.)Cashflow: $4.2k / yearCash on Cash return: 13.68%The appraisal came in at 146k and they raised some very valid points on why the property was not worth 153.  

It still projects to cash flow anywhere from 8-11% over a 5 yr hold, with a total return of over 100% to the investors including capital gains at sale.  

He offers a few different commission plans including 100% commission. 

If the tenant did that, then a judge would decide the outcome, which would not include include criminal charges due to existence of a contract dispute... if they won, the landlord would owe them for damages, being the cost to recover the vehicle, legal fees, and maybe lost wages.

Do you have any verbage that I should include in what I will write up?

The numbers tell me I will make ~600 per month including all the expenses on maintenance, vacancy, etc.

Per 2015 Landlord Tenant Handbook, rent control also applies to the following:"Residential rental units covered by the RSO include: apartments, condominiums, town homes, duplexes, mobile homes, mobile home pads, and rooms in a hotel, motel, rooming house or boarding house occupied by the same tenant for thirty (30) or more consecutive days."