We have property taxes and insurance to pay.

Realtors also have insurance, tons of regulation, and hopefully experienced brokers that are all very interested in protecting you from scams during the home sale process.This is a scam. 

I would you to think long term as far as rent appreciation, insurance (which keeps ticking much higher each year), and property taxes (which may get reassessed when you purchase the property). 

The other thing I often see is that over time, different homeowners/contractors have decided to DYI adjustments to their home aka took out walls, didn't shore things up properly, put in new doors, etc.My point is that what you are seeing is not abnormal for older homes. 

There is a homeowner exemption but the taxes are still 7k to 8k a year for that house. 

Holding onto it is a smart decision, and you're entering property investing in a solid position.To get started, focus on ensuring that the rental income will cover your mortgage, taxes, insurance, and any maintenance costs, leaving room for profit.

In the next few months, I'm looking to get a standard CA NAA lease with RUBS included for billing the water and sewer, as well as requiring tenants to have their own renters insurance, as that is not something they are currently required. 

If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.

I filed an insurance claim on our landlord insurance and got a remediation team in there immediately to stop the damage.

High property taxes and increases in insurance are very real there as well.