Yes, I do have to agree with you that owning a property in the bayarea for primary residence is not wise from an investment standpoint, it is simply a personal choice.

I think what @Charlie Fitzgerald was saying is that they had taken the unwise choice to not purchase insurance, maybe because they owned it free and clear.So if this is true, it's an example to you of the stark reality of not having insurance (again, in our case as investors, it's crucial)Regarding the previous contact with the owners, things change, minds change with time.

If you can't find houses that need rehab in your stable neighborhoods where you can earn equity through the rehab and eventual finance process with the portfolio lending rates, it seems your other choice would be to look outside your current investing areas for greater rent/cost returns. 

Success is a process, failure is a choice

Success is a process, failure is a choice

Success is a process, failure is a choice

Success is a process, failure is a choice

Rowhouses are the asset of choice in the DC market.

I am looking to expand much quicker and consider my strategy of choice to be buy and hold.

I think you are also going to be very hard pressed to turn $100,000 into $60,000 a year, because that's what $5000 a month in cash flow is.In order to possibly do this you have to leverage that hundred thousand dollars several fold and your interest rate would have to be close to zero.An alternative might be to purchase a dilapidated multifamily property or apartment building, fix it up and increase rents and then do some kind of long-term refinance.