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

You will find that there is plenty of fat.

I talk to our local Section 8 office frequently as a property manager and in the begin they made it VERY CLEAR that the minimums are to protect the landlord AND the tenant.Most likely, the tenants are not going to have excess cash flow or savings to cover any of the damage to your "upgrades". 

Also, thanks Steve, I'm glad some people agree with this required license being too excessive.

Second, I know the tenant doesn't have excess funds as they are still dealing with the effects of hospitals, drs, etc.

Quote from @Kent Smith: I have read several threads on thisYour rent income will be erased down to zero by your deductions, so you do not owe more taxes.Also, you do not owe less, because you cannot go below zero.Good news: the excess loss is not wasted.

Hey Justin,Thanks for your comment.Our bread and butter are single family but we are happy to take a "custom order" for multifamily.We usually do this for existing investors only tho.Also, as multifamily is out of the usual scope of what we do, we would require some fat cash in the deal to give us peace of mind that the transaction will actually go through.Over the years I have experienced many folks talking a big game but never actually playing it.Thus we need to protect the company in such a way by asking for $$$ in advance.Thanks again and don't hesitate to ask any further questions.

If your losses exceed your gains, you have a net capital loss for the year.Offsetting Other Income: If your net capital losses exceed your capital gains, you can use the excess losses to offset other types of income, such as ordinary income from wages, self-employment income, or interest income.

I couldn't build you something for $105/sqft but $200 plus site prep is excessive. 

Fine and violation for excess trash dumping 6.