Now I use a PM for my CA rentals because CA started withholding tax for out of state landlords.

Go through the process and teach yourself how to lawfully calculate damages, withhold the deposit and get a judgement.  

Most states have a proper way to with hold .

I was not expecting 2 month's rent to be withhold, just one.my rent is not above market. in fact, i am getting $75 more than what the previous tenant was paying. my house is in the perfect location, amazing house and people think they can get in...until they see the requirements that i have listed to get in. that's why i had just 3 applications and rejected 2.I just talked to him after he avoided 6-7 of our calls.

Once the tenant starts withholding rents for repairs, they can do so until the repair is effected, but the amounts must be held in an escrow account. 

First, if you haven't given them their deposit back, I'd withhold it, saying that it has to go to the unpaid utility bill.Most likely the utility company will come after you for the bill, and expect you to sue the tenant.  

The builder says they are following the contract and the Title Company is now withholding the final 1.5%.

Technically speaking, it's my understanding that I can now legally withhold all rent in my state (Rhode Island) until repairs are made.

. - Capital gains (Depreciation will be taxed at 25% while the rest will be taxed at 15%)- Net Investment Income Tax (this is a federal tax) at 3.8%- CA income tax (the proceeds are taxed as ordinary income with a max rate of 10.3%)You'll also have CA withholdings required, so you'll need to account for that at tax time. 

My big question on this applicant is tax withholding.