You have a misconception that I'd like to destroy immediately. 

Another common misconception is that people think that because it has flooded, they will not be able to get flood insurance.

There is a lot of misconception out there about working as an agent - evident is the huge drop out numbers, to the tune of 80-90% in the first and second year, depending who you ask.

@Adrian Kar I think the biggest thing to understand here is that there is misconception about these areas in CA.  

One problem is the misconception around depreciation.

It is definitely a very common misconception and I am glad you asked the question so I can clarify.

Also, since you mentioned some investment/Turnkey websites, I would look at:The Best Types of Markets for Profitable Turnkey PropertiesandThe Most Common Misconceptions of Investing in Real EstateandOut-Of-State Turnkey Investing: How to Minimize Your Risks

So I hear and see a-l-o-t of misconceptions. 

@Kenny Ye that is a misconception there are 30 year commercial loans without balloon payments.

And they missed other material things too.To answer some of the misconceptions and questions I'm seeing on this thread: RS had received another huge round of funding about 1.5 years ago from Venture Capitalists (VC’s): $63 million in total.