I still have the go ahead from the seller but now no buyer as this is not a distressed situation so seller will not sell at a loss. 

If you deal with a broker who's not active, the major loss in $$$ comes from the vacancy factor.

I might get an energy audit, to see how much heat loss I get through the walls.

They often seek three things:  1) stable / mature markets to invest in 2) the prospect or probability of asset appreciation (where real wealth is generated) and 3) passive losses to offset the excess income they already generate.Just like an investor seeking cash flow will find it difficult to compete on price with a buyer who intends to live in the property they are buying, a cash flow investor will find it difficult to compete on price with a wealth investor who is less concerned with income and deems short term cash flow losses acceptable.In Los Angeles, Pasadena included, you are competing on both ends.  

Disclosure: I represent Affinity Loss Prevention Services, the chosen loss prevention partner of NREIG/AGMThis question and a few items came up in another thread and warranted further discussion.

To go through the rigamarole of assigning TIC %s seems to be both unnecessary and dangerous because you are now flirting with a change or perception of change of ownership structure.Going into contract as your names does not hurt anything.  

Furthermore, they will be paying off the mortgages and I will be depreciating all that passive loss.

They tend to know this because some landlords will do a repair and then claim a higher gallon loss than actual to get a larger reduction.     

Education prevents financial losses by helping to avoid mistakes and wastes of time and money.

.- 1st Method: Focus on BRRRR on properties East of the 125 highway in regions such as Spring Valley, El Cajon, & La Mesa as these are moderately well priced in the SD area, have room for market growth (&loss, be cautious) as these inland regions fluctuate more than the coastal SD regions, and finally the amount of Duplexes & multi-family homes are more prevalent in these areas of SD. - 2nd Method: Riskier and heavily focused on Marketing to Condo Owners for Condo flips in Downtown San Diego.