In addition to the response above, any excess losses incurred can be used to offset other similar types of passive income. 

I own and self-manage a property that recently had two drip valves break causing excessive water usage for January, February and March.

Does the previous owner need to authorize a payoff?

Just got a phone call from a local fencing contractor telling me that he just finished installing a fence at one of my rentals.  Problem is i never told him to do the job.  I got a quote from the guy back in December....

You don't need a broker in CA to lend either UNLESS you plan to charge in excess of the usury limits.

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

Easiest solution might be just to extend the period of being able to collect that overage before it gets escheated to the state or taxing authority. 

The concept here is to get to the point where your tenants pay for your housing expenses, which should give you some excess income to save and invest.These initial steps could get you to a point where you have a few doors and maybe even have your tenants covering your own housing expenses.Think carefully about selling, it seems counter-productive if you want to be an investor.

I've reached out to the local housing authority for additional information waiting to hear back. 

https://www.ewg.org/news-insights/news-release/2024/03/over-240-california-community-organizations-unite-againstLate in the legislative process the tax was slipped into a 2022 law, A.B. 205, authorizing the California Public Utilities Commission, or CPUC, to add a fixed charge to electricity bills based on household income.