But, there is a credit available for taxes paid to other states to deduct from your CA tax bill to somewhat avoid double taxation. 

I said yes, and he mentioned that he would deduct the cost from the rent.

That's how you scale it, just put all your extra income into marketing and it will be fully tax deductible (it's your expenses after all).

The K1 could show you have ordinary income, deductions, capital gains etc depending on what the investment opportunity was and how they managed and exited the investment vehicle.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

You'd be surprised, it could be fun and you could be forced to take a tax-deductible trip to your property once in a while. it could be a nice lifestyle + profit combination.In any case, I think it's great that you made those comments .

Its not killer cash flow, but there is cash flow.Don't expect to start deducting things like vacancy, maintenance, cap ex, etc.

The problem with capital contributions is that the deduction must be amortized, with varying schedules depending on the classification of the items purchased.

It will be done correctly every month and during tax time, you and your partners can easily have to CPA/book keeper issue 1099's and get your taxes filed on time with all the right deductions.

If you have to pay for floor installation, hire a pro and ensure it's done right.Second, if you deduct from rent then you can lose twice.