My local market in Cali just breaks even or slightly negative each month.  

Louis, watch who you get with as they can take you, break you, not to mention get yo into trouble.

That way if your buyer defaults, you are at least break even.

You know the formula: over time the property appreciates, rents increase, you pay down your debt... along the way you get leverage galore and even tax breaks for depreciation, interest, taxes, etc...So buy a place, rent it and do that for a decade or two (or three or four)......Ka-ching.

My concern other than things like water pipes breaking and damaging other units would be protecting myself from claims by tenant.Is this make sense?

Start will an overall number (total rehab expense), break that down to sub categories (kitchen, bath, paint), and then make sub-sub categories (cabinets, counter, appliances).

Your manager will make or break your returns!

What's the best way to find a contact for when things break in the apartments I'm buying?

With the market prices so high, making any money off of rent to pay for the mortgage is either break even or make $100 or so, so is that even worth the risk?

Keep renting it and keep breaking even at the current rate.