3)  Will I have to file return for the LLC every year ? 

That is good cash flow but only an 8% return on a $63k cash investment.

Your cash-on-cash return will (best guess given the information provided) be 3.8%. 

I do commercial real estate and it is about time and money for return.

When sellers learn that they can get just as good of returns as banks, not just the interest rate, many are interested.  

Here's the low down:250 Units, Evansville, IN | Class C+/B- AssetAcquisition and Assumption of Existing Debt (35yr Amort at 2.93%) + Mezzanine Note + Equity of about ~23% Equity Raise: ~3.1 Million (our own cash + limited investors as well).Plan: achieve cash on cash returns in the mid teens (going in 8.55%), IRR of 15%+ and 2.25x over a 7 year hold.

Here's the low down:250 Units, Evansville, IN | Class C+/B- AssetAcquisition and Assumption of Existing Debt (35yr Amort at 2.93%) + Mezzanine Note + Equity of about ~23% Equity Raise: ~3.1 Million (our own cash + limited investors as well).Plan: achieve cash on cash returns in the mid teens (going in 8.55%), IRR of 15%+ and 2.25x over a 7 year hold.

Unless you are tied to CA for some reason, why not look at a place where your cash flow returns are better?

A typical analysis would say if my projected rental income (conservative modeling) dropped 10% and occupancy dropped to say 81%, am I still able to B/E and pay the debt and provide what level of CoC return to my investor.  

Honestly, if somebody can't afford to come up with $4,000-5,000 for a deposit (which ideally is returned to them anyway), I probably don't want them as a tenant.