I had rather been hoping everything would be dry, since there has been no water for a year, but no such luck. 1/4 can of Febreeze and holding my breath gave me enough time to sprinkle 1/2 box of Ridex septic treatment into the bowl of the toilet.

If I do it this way, would that trigger something with the IRS?

What is your strategy for when you can pull the trigger on your next investment?

WHO you want to invest with - find a good TK that you can trust...go see them...meet the team, make sure all the documentation is in place before pulling the trigger.  3rd party inspections can go a long way to ensuring you've got a good property that will perform for a long time.

If you say 'YES' to all of these questions, I think it is time to pull the trigger.

I would have thought your mention of me would have trigger a notification.

Anyway, the short responses to your questions1- live-in renovation in 2011 FHA-insured loan2- tenant screening is key if you are going to be neighbors with your tenants...and introduce yourself as the "property manager"...separation makes things easier when you live next door. 3- first time...total guess...got lucky and settled into a $40k equity position from onset...did lots of homework, but limited to zillow back then...4- don't be afraid to pull the trigger on a deal. consult a great local agent and be confident your numbers meet your needs.

Can this be done in California without triggering a reassessment of property tax or any other negatives?

The better areas have dried up. 

Wells rage from about $5000 to $10K  for a full replacement, but unless the water is bad (contaminated) or dry you can usually fix them its litterally a hole in the ground with a pump at the bottom of the pipe, everything else is in the house and as simple as can be, a $20 pressure switch and a $100-200 pressure tank is pretty much all that usually fails.