You need to have the income and tax liability to support the depreciation.

Approximately 6-8 weeks ago my attorney stated he was unable to get the delinquent tax 'owner' nor the squatters served in this matter. 

I haven't seen prices drop too dramatically but I have seen homes in my buy box sitting on the market longer and some lowering prices. 

Contrary to most business lending, the REI industry has a lot of "non-bank" lenders that provide attractive loans that can lower your cost of capital and improve your profit/cash flow. 

Out of my 32 properties, I’ve seen insurance rates drop by up to 40% on renewals, and property tax increases are finally slowing down compared to the crazy jumps we saw over the last five years.

However, if single-family homes prove financially viable, I’m happy to continue building in that niche.Since these homes and projects are significantly cheaper than my market, the risk is relatively lower for me and can do at least two at a time.The ChallengeOne of the biggest hurdles is finding reliable contractors and subcontractors in the area.

This was my first deal, and house hacking made the most sense because it lowered the threshold for risk in my mind.

California does not recognize Real Estate Professional (REP) status, but you can still claim it on your federal taxes if you qualify.

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.

https://www.biggerpockets.com/forums/51-tax-legal-issues-con...