I've heard that the few that have had theirs so far are failing for easily correctable issues.

After discussing with her, due to the age of the house she is wanting to get out from under it as there are some cosmetic issues about the house that would just take the time and funds to do (like replacing some of the laminate wood slats, harder to find an exact match than anything).

Or you can section 8 and just keep falling into similar issues.

Or do you think that would cause too many issues between the tenants? 

They tend to have lower credit scores or other issues.

If you aren’t doing the work maybe lpv is a better option or if the tenants will have an issue with a really loud sander being used continually for a whole weekend lpv could also be a better option.

Question is - is there any issue with doing that from a compliance standpoint? 

California isn't ideal because the current migration from the rest of the country to the southeast means low appreciation or even short term depreciation will be an issue. 

I'm fortunate to discuss all sorts of complex real estate tax issues with Michael on a near daily basis.

Perhaps it’s a health and safety issue?