If you want to provide your property's address, I can give you some additional feedback. 

California does not have a law requiring deposits to be held separately (neither did Alabama when i had Alabama properties) and it seems like a significant hassle to address a virtually never occurring event (not having money to return deposit to the tenant). 

Keep in mind that I am selling them as affordable fixer uppers and usually only address any health, safety, and functionality issues.

You should ensure the property is inspected regularly, maintain climate control to manage moisture and temperature, and address small issues like leaks or cracks early to prevent costly repairs.

But to address the question, the answer is when they can afford to participate.

Highlighting the strong profit potential and taking measures to address any concerns about costs, scope, or holding risks will make this an even stronger pitch.

So , I’d like to address a few posts where the poster has expressed his opinion that I disagree with.  

One of the biggest challenges of investing in Rustbelt cities is knowing where to invest and properly understanding the cooresponding pros & cons.Here's copy & paste advice we share to help to address this challenge:-------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

I thought it might be helpful to address some of the most frequently asked questions that I receive.

Here is a recent post of mine that addresses your questions:Cost Segregation - The Basics (biggerpockets.com)You don’t need to complete it before the end of the year to use it for your 2024 taxes.