I wouldn't touch it without a really experienced PM, someone who has extensive experience in RC properties within LA.

Since they've been there 5 years at least, it's borderline if I could deduct from their deposit for the extensive carpet damage right?

Before you get to that point, you should ask the seller for an extension.

FWIW that made me look into CC warranty extensions.

@Christopher Smith I'm not sure, I filed a tax extension so have not filed yet while using QBI yet. 

I am finally accepting the fact that I need to file for an extension and work with a CPA.

If you had capital gains on other investments you could offset those gains with this loss (depending on the amount)My recommendation is to file an extension and have a CPA do your taxes since I am not an expert in this

New property bought is always a loss if not rented whole year.I filed my own taxes extension - to get numbers in the order.Just to not hate IRS, file an extension and pay taxes till Monday you think you owe.When accountants get back to their normal, find a CPA and start filing taxes as a breeze. 

The other two need more extensive rehab but could be put in rentable condition.

Almost everything with a statutory deadline of April 15th that hasn't been filed at this point is on extension.