CA, in total continues to lose 100k's of population and continues to add onerous legislation, including the state rent cap they passed a few years ago (doesn't apply to sfr's though).I am not sure why anyone would want to jump in the deep shark infested waters right before feeding time, unless you have a clear proven strategy, or a very long time horizon.

So I would have 23k stuck in the deal and would be losing close to $700/m before I deduct any expenses.

If you don't want to manage the property at all, you are losing money on the management when small scale management is not hard at all with a little help.

Its only good for tax purposes if its still a wise investments and you do not lose money on it.

Then in 2020 it turned out cashflow wasn’t guaranteed, the government could burn your cashflow to the ground and you could lose everything.

I have seen many investors lose money due to purchasing site unseen.

I see landlords lose thousands, even tens of thousands, making rookie mistakes that they could have avoided with a little education up front.Once the first property is under contract, start again for the second.

I like to look for board orders, excessive fines for weeds/grass, stop orders, and unsecured premises. 

Hotels lose money with no guests.

He loses his baby.