You said public water was available...would the lots require a septic system to be installed or is public sewer available? 

However once all was complete, the tub and toilet water still had a yellowish tent to them.

That's a fundamental requirement.

Call the registrar and ask. 1-800 321-2752 https://www.cslb.ca.gov/newsletter/2010-summer/page9.htmThe current text of ab968 requires FULL disclosure with copies of all contracts, permits and warranties within the two year window.

@John Jacobs I require my borrowers to have policies that cover replacement cost. 

Your PM replaced the water heater because it was leaking.

I know some might disagree.The challenge is if someone applies and meets all your criteria and you reject them, I would hate for you to end up in some legal hot water.

You must have the Business tax license & pay all the fees required.  

I spoke with State Farm, but they require plumbing and electrical panel upgrades just to consider reviewing my application.

You want to make sure you aren't muddying the water and making the tenant think they have longer to get out.