However, in California, each LLC incurs an $800 annual franchise tax plus gross receipts fees if revenue exceeds $250,000, and property insurance may cost more.

And that can cost you time and money.

I'm getting nervous that the area is eventually going to become unlivable because of the prohibitive cost of the insurance.

How to track potential growth in an area to see if a lot is viable for purchase and building spec homes on etc. 

With down payments, improvements, commissions, title work, holding costs etc....

We are seeing people move from higher cost of living areas like Raleigh, Durham, chapel hill, and even Greensboro.   

It's probably best to have them pay out of pocket for a smaller cost like this.

Again I cannot collect rent to justify this cost/effort.  

I think it just benefits current owners. our replacement cost variability just went up a lot for the next 4 years.

I am open to it- but unfortunately, I am not looking to move until another 2-3 years- my partner and I rent an apartment on IOP and we love the location and the cost is actually incredibly low which is great.