But if the waterfall is based on an annualized return the amount of pref due will decline as the capital shrinks with each return of capital distribution.That said, while the total dollars of pref does decline, the total due to the investor doesn't decline dollar-for-dollar because what happens to the excess dollars is they drop to the next tier. 

He can do as he pleases, hire contractor to do repairs and bill tenant, ask tennat to remove dog from property after repairs or evict for excessive damage.

We are assuming the dry well has collapsed.So, what to do?

Include things that are important to you like paying rent on time, excessive noise or parking, drug use in the property, occupants that are not on the lease, maintenance items, and how to communicate with you....to name a few.FOLLOW YOUR POLICIES! 

Second of all, how is someone who has a credit card balance/debt, car loan balance/debt, or excessive spending on disposable goods "more responsible" than those who invest despite carrying a  student loan debt?

Try Bernard & Schemer, P.A. they are on Busch Dr. I

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

This (per the above) is not an excessive amount of money.

Too many people doing it wrong and illegally, not to mention leaving sellers high and dry when they back out of the contract because they over paid and could not find a buyer.

And not only did I not paying any taxes on it, I’ve paid negative $60k in excess depreciation I use against other rental income. $530k in 15 years isn’t retirement type money, but it’s not zero or worse yet negative money either.