All advice is much appreciated. helping me make my decision. mostly thinking about 5-6 until apts building somewhere for 12% cap rate or possibly higher. 

The property is currently being used as a primary residence (looking to move to CA) and was purchased in 2021 for $650k with a 30-year fixed rate mortgage and PITI is just over $4k per month today.

I have not come across a rate that high.

Not that being out of state affects the cost in that regard, but you may find it more difficult to properly vet a manager, especially when it comes to their attitude toward residents who may need more flexibility, compassion, and patience than in a market rate building.Second, and bigger, issue is that HQS inspections are a very real thing.

Current rent rates for all 4 tenants are well below market rate because of the condition of the property.

With less competition, if you have good theming and design then it'll be easier to charge a higher nightly rate and keep your property full which will make it more profitable.

In calculating the Net Present Value of the investment, what is the appropriate methodology to use in arriving at a discount rate?

North of town, west of I-5: 95219 Brookside (high end gated communities; Mello Roos school taxes - so high taxes; Lincoln School District; some peat dirt problems on streets; don't know about foundations); Spanos Park West (some gated; lots of huge houses; basically built for commuters just west of I-5; Lodi School District) North of town, east of I-5: 95209 Spanos Park East, Colonial Heights (most Lodi Unified Schools; though small pocket of Lincoln Unified) North of town, east of I-5: 95207 Parkwoods and Lincoln Village (Lincoln Unified Schools; was considered best family area due to Lincoln Schools, but lots of flat tops and built since the 1950s so electrical can be kind of minimal - 1 outlet in kitchen instead of enough to use multiple appliances); lot of remodeling in this area.

To make wise investment selections, be aware of area trends, rental rates, vacancy rates, and property valuations.Keep in mind that investing in real estate is a journey, and there will be obstacles to overcome.

That email should start with a breakdown of the estimated purchase price, rehab costs, estimated income, and return on investment assuming prevailing interest rates.