@Matt Smith generally speaking it’s a combination of rising interest rates which have caused cap rates to increase (thus wiping out equity), debt is resetting at higher rates, rising opex costs due to inflation and stagnant or softening of rents due to an increase of supply.

I can see an explicit exception in CA Tax Code § 17561 that says you can not use the qualifications in Section 469(c)(7) (Real estate professional) to render that income as non-passive, but I see no callout for 1.469-1T and, as such - as a non-CPA - I do not (yet) see a reason why we cannot follow the same rules for CA that we do for our federal taxes; e.g., if the business is not a "rental" business per tax code, we count that income as non-passive and offset other income (W2, etc) similarly.Does anybody else have some guidance (or opinions) on this matter?

Here's an article with additional FAQs on cost segregation studies that you may find helpful.

Hire an interior designer.💡 How do you keep rehab costs under control and avoid surprise expenses?

Then you look like an idiot!

Thanks in advance.I am guessing you have an FHA loan on the house and the new buyer will be purchasing with an FHA loan?

Anyone in Houston investing in an opportunity zone? 

I am not an attorney but would love to hear opinions on whether this practice could set a legal precedent for the remaining lease term?

Quote from @Jeff Calcaterra: We have a potential tenant new to the area who has gone through a paid background check, signed a background check authorization form, sent us a LinkedIn profile, sent an offer letter and says he is willing to send us paycheck stubs, but says he doesn't want us to call HR to verify employment because he is supposed to have found housing already.

As an owner you're allowed to manage your own properties.