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.

These are just talks we have from time to time on experience with how a GP thinks when sourcing and evaluating deals.For value add I only do very fat deals now to syndicate for single tenant.

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.

(edited)This will affect investors with separate metering for little used units or devices like pumps or EV charging.... even if you have excess solar generation or whatever the bill charges will still apply. 

Conduct a thorough inspection to assess the true condition of the property.High Vacancy Rates: Excessive vacancies can signal underlying issues such as poor management, undesirable location, or an oversaturated market.