If it gets harder to evict tenants, landlords will require higher deposits and rents to make up for those potential losses.

Since the beginning of Q2 2014, the average growth rate for industrial-using employment in Los Angeles has been -1.1% per year, representing the average annual loss of 6,824 jobs.

ANY responses that help me refine my vision and learn different perspectives are appreciated beyond measure. 

I get an email informing me that one of the investments went bad, the company had to foreclose on the property and that I can expect an 87% loss of my total capital on that investment. 

The IRS in its Passive Activity Loss Audit Technique Guide published a sample Activity Log.  

Alec,From an Insurance perspective, ask the current owner to get from their agent "Loss Runs" for the past 5 years.  

The goal of any insurance company is to minimize there losses. 

Or one who assumes the risk of loss prior to settlement? 

So it wasn't a complete loss.  

Properties, for novices, which look good on paper and have good cash flow usually come with C to D+ areas, risky tenants, and a lot of cap ex that you can't see on the internet (basements, roofs, water issues, outdated mechanicals).You are turning a terrible loss into a springboard which is great, but you are trying to move too quickly it sounds like.