Some of the local municipalities here will contact a taxpayer with a letter essentially stating you filed a Schedule C, but you don't have a business license - explain this to us.I don't know that California does the same, but the opportunity is there for them.Best of Luck with Your Real Estate Investments!

I guess if damage is done I have security deposit and legal recourse as well.

It depends on if IRS considers you an investor or trader. they look at different factors, I pulled court cases where they looked at these:(1) the taxpayer's investment intent; (2) the nature of the income to be derived from the activity; and (3) the frequency, extent, and regularity of the taxpayer's securities transactions (Kay; Mayer; and Moller)  A taxpayer is a securities trader only when both of the following are true: (1) the taxpayer's trading activity is substantial; and (2) the taxpayer seeks to profit from short-term swings in the daily market movement, rather than to profit from the long-term holding of investments. 

No social security tax, no Federal income tax or state income tax. 

If the neighbor hasn't filed a specific complaint for negligence then you have nothing more than a pesky neighbor.

i would check the property on the county website and see if any contractors filed any NOC that have or were to do any foundation work if you are concerned there might be a sinkhole. 

We've let tenants paint before, letting them know we would use their security deposit to repaint the property to the original color at the end of their tenancy.

Given this much notice, the tenants would have to leave by 9/1.At closing we found out that these are brand new tenants, they had just moved in, and that there is no lease and no security deposit.

After graduating from ITT Tech i began working for a company installing home security and structured wiring in homes; that's where i was introduced and found a fascination for Real Estate and began watching HGTV.

My mortgage lender (not a bank) has used every property I’ve bought as income immediately following purchase when I send them the lease and proof of security deposit.