In fact he gave me credit for income derived through the LLC including all add backs in excess of my actual cash flow distribution. 

It depends on the type of lender and their risk appetite.

This material has 0 tolerance for humidity of any type, and will explode like a sponge if it gets wet a couple times.I have seen situations where homes are closed up all summer due to foreclosure and large portions of the floor start to swell and buckle just from excess humidity and no A/C.

In addition to the response above, any excess losses incurred can be used to offset other similar types of passive income. 

I own and self-manage a property that recently had two drip valves break causing excessive water usage for January, February and March.

You don't need a broker in CA to lend either UNLESS you plan to charge in excess of the usury limits.

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

The concept here is to get to the point where your tenants pay for your housing expenses, which should give you some excess income to save and invest.These initial steps could get you to a point where you have a few doors and maybe even have your tenants covering your own housing expenses.Think carefully about selling, it seems counter-productive if you want to be an investor.

. - I hear your concern about a potential excess of new housing;  I used to share it as well. 

There is a lot of building going on and prices are quite high so I am not sure there will be excess appreciation.