He never charged late fees they were all his "friends" fast forward 2 years and all the units have been turned over the average rent is increased by 25% bringing everything back to market.

Same approx. net to seller (minus about $15 per $1000 for increased difference on doc stamps of deed and Owner's Title Policy)WHAT IF SELLER HAS TO PAY CAP GAINS TAX ON THE PROPERTY?   

Why not increase the security deposit due to the pet?

The home prices here in OC are appreciating..although it's anybody's guess of course how that will all play out in the future...so the house will only increase in value, I would expect.   

This may require increasing his income for a short time working extra and cutting back on non-essential lifestyle things or improvements to the property, which isn't his yet.

(Although I don't know what it is like in LA)Even if you are able to increase the rent, that could happen at the expense of higher vacancy rates, further negatively impacting your cashflow in the short term.Based on the asking price of the seller, you will be subsidizing the lifestyle of your tenant.In my opinion, it is not a good deal.

If I were the previous owner (AND it was still within time to file a claim), I would say no because A: it should've been something you brought up before, and B: even if you pay the deductible, the claim still remains on the CLUE report for up to 7 years, increasing their premiums for the new property.

If your credit has improved, you may get better terms than you currently have and, even though you may not pull equity out, you can reduce your monthly payment = increase in month cash flow. 

  - being able to use projected rents when purchasing a multifamily to be able to qualify- ability to convert properties and increase or decrease units@Abel Curiel - you are correct - rates tend to be higher- normally 1/4 to 3/4% higher depending on factors and timing. 

From a financing perspective, I guess it is more difficult to borrow from banks against self storage facility to increase leverage, as compared to borrowing against residential rental property.