One particular situation with $700k of debt and $2k/month cash flow may be extremely dangerous and another may be low risk. 

The process of identifying a quality applicant is extremely difficult now with the amount of fraudulent paystubs, bank statements and IDs.

Covered California super sucks, private insurance is extremely expensive & CA fines you at end of year for any lapse in coverage.Employees have no idea how lucky they are, especially here in CA.My workers comp and payroll taxes are almost 18%! 

Im actually also in your camp but maybe not as extreme.  

My initial hunch is that there may be extremely limited options of what can be built, and a likelihood of nothing being allowed. 

The above issues are extremely common with all properties I buy, but what I buy are pre-existing multifamily with some meat on the bone. 

If you have the cost segregation done by a reputable company then even if you get audited, you'll have proper support to back up your deductions.Now whether it's worth it - A cost segregation study can be extremely beneficial but its a case by case basis that depends on a multitude of factors.

If the software is not simplifying your life or making you more accurate, you shouldn't use it.Software has extremely helpful features like online payments, marketing syndication (click a button,your property is advertised on multiple sites), electronic document review/signing, maintenance tracking, and owner reports.

Sounds extreme, sure, but everything else we tried before it didn't work and you can't give anyone a free pass to steal. 

Location Location Location is extremely important.