DISCLOSURETHE FOLLOWING IS FOR INFORMATION ONLY, AS I AM NOT AN ATTORNEY, YOU SHOULD SEEK PROFESSIONAL LEGAL ADVICE.So what must you do?  

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

Surround yourself with knowledgeable professionals who can support your real estate endeavors.

Lots of depreciation you will pay no tax maybe even shield some W2 income.B.  8k maybe 10k if you pick the right guy to lend your money to in interest income you will be paying much higher tax rate on this income FYI no depreciation expense. 

@Pratik as @Neil Narayan mentioned, cash flow is very challenging due to the property values, property taxes, and soft rental market.

Tax Preparation, Tax Advisory, Accounting.

-Management is low - you'll need at least 10% plus leasing costs - typically a month's rent for each lease-up, and sometimes a renewal fee as well-Insurance seems low-Are taxes accurate? 

.: Stessa isn't good for keeping track of tax deduction items.Stessa was designed to just look at P&L.

It's a more affordable market and lower property taxes, so you may actually have a chance to cash flow.

BTW behind Texas.When all forms of taxes are calculated (income, property, and sales tax), CA ranks below the middle of the nation in total tax rate.