The statewide Just Cause Eviction law will make the tenancy lasting forever. You won’t be able to terminate the tenancy when the lease ends. The lease will never end.
When you sell the property, you will most likely sell the tanant occupied property to an investor who will pay you less. A regular buyer would have to buy the property first, then the buyer will have to pay the tenant and lawyers to relocate the tenant before the new owner can occupy. Either way, you will have to sell at a discount if you are lucky to find a buyer.
Look like IPO multi millionaires wouldn’t be able to prop up the impending selling pressure.
As the price decline, there come a price where the monthly mortgage would be lowered than the rent. Hence the tenants would leave. Can sell the house then?
Buy in an area with high turnover like Davis or Tahoe. My average Tahoe tenants last a year or two. Never have a problem raising rents on vacant units. Plus it gives the opportunity to add value by upgrading.
I know of a Silicon Valley engineer that made tens of millions in Davis. Students get lots of money from student loans and you can raise rents like the university’s raise fees. Much higher than inflation. Typical student spends $16/year on housing. Much more in SF.