There have been multiple legal challenges to this position of the FTB (California tax department, or Franchise Tax Board), but I don't believe any CA resident won such a fight.

Challenges?

The higher interest rates and more challenging (but not impossible!)

I have a challenge for the OP. 

The challenge?

They take on the responsibility of tenant communication, emergencies, and paperwork, which can otherwise be overwhelming for individual property owners.The Challenges of DIY Property ManagementWhile many investors choose to manage their own properties, it comes with its set of challenges.

Challenges?

Not only did we receive significant tax reductions, but the mere act of challenging the assessment locks the valuation in for three years.I'm PMing you with the contact information for the company that helped us in Atlanta!

The 19134 zip code and other parts of North and West Philly offer properties at very affordable prices, but may have more challenges with tenant quality and vacancy rates.

Challenges?