I recommend learning a bit on how to read the financials, but find yourself a great Accountant to help you analyze the financials and tax returns to make sure things make sense and are proper. 

Makes perfect sense.

Makes sense. 

@Will GastonUnderstood and makes sense.  

I think he ended up spending 30-40k for the fire suppression system, windows, and whatever else the city required... and I'm not even sure this is possible anymore, since I think Union City's program is not going on anymore, and, in general, they require showing off-street parking.I'm uncertain if the economics will make sense for you, although I'm not sure what JC may require or how your basement looks now.

Thanks folks, it seems like overall it doesn’t make the most sense to start an LLC for real estate purposes due the cost and complexity, with few benefits here in California.

There is very little technical knowledge needed, but there is a lot of common sense needed.I would google "rental property investing for beginners" and see what you uncover.  

I've heard of folks using the equity in their rental properties to purchase additional properties and I'm trying to learn if this would make sense for me.

The one I close on this week the numbers don't make sense to keep as a rental.

If you currently have a high cash flow income stream in place that allows you to weather the negative cash flow storm from your rental(s) with the intent of holding the property(ies) for appreciation, then it may make sense for you.