As part of your due diligence process ask questions such as : why this neighborhood, how did you determine the market value of the home, what do you think annual rent escalations will be and how did you come to that conclusion, what do you think annual maintenance costs will be, what vacancy factor are you using in your model?

Tax reporting costs,  annual renewal fees, legal fees to establish and maintain...Hopefully you didn't transfer with quitclaim deeds. 

Many people will go forward if the money spent gets them a larger ROI than their current or projected COC return, others may decide they want 20% minimum return to justify the spend and time.Once you have decided what your return threshold is you just run the numbers:ROI = added revenue (annual) / cost of jobLet's say that after doing a detailed market survey you determine that you can get another $100/month but that it'll cost you 5k per unit upgraded.

I wait until their annual or bi-annual kitchen sale.

@Scott wolf, the building is in cooper Square.

This is great from diversification and capital protection perspectives.All 100 loans have to default to lose 100% - which is a rare scenario.The annual yield is about 8%.That means even if 8 loans default, entire year's interest is wiped out. 

The other units are tenants on annual leases.I am concerned whether this may be a negative to the other tenants due to more traffic from strangers every few days, may be more noise at night?

One company I reached out to doesn't offer "vacation rental" insurance, but quoted me for an annual tenant at $850/yr and a minimum 30 days (max 3 times a year) tenant for $1,730/yr. 

One company I reached out to doesn't offer "vacation rental" insurance, but quoted me for an annual tenant at $850/yr and a minimum 30 days (max 3 times a year) tenant for $1,730/yr.

Assuming that the figures and research are correct, if the rent control was in effect for this year, something like 40-50% of rentals in the Bay Area wouldn't keep up with the annual increase cap (based on fair market value).