Some hearings can be watched by the public online.Around a third of cases get dismissed, often because the tenant came through with the money.Tenants tell of medical emergencies and job losses, of the money that hasn’t come in yet but is expected soon.

Additional question would be, can the SMLLC build the house at a discount (taking losses for the business)?

As it is, the current rent control laws sprinkled across CA create unnecessary challenges for new landlords.

I know if I sell I would take a loss.

If that is your primary focus it could convolute thinking and force unnecessary errors, in an already error prone business with a very high failure rate.

It is completely unnecessary and a total waste of your money.

Fewer doors to sell.I would compare loss of revenue to savings in loan.  

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

Every turnover will cost you money due to vacancy, Plus you run the risk of additional losses from unpaid rent, cleaning, and repairs.

This all comes down to how you're structured, how the flip cost were accounted for, if there is a partner (you mentioned "we").If it is an S Corporation and you "distribute" or "sell" the property to yourself, if there is any loss on value, which probably there isn't, know it most likely won't be deductible if it's a related party transaction.