There are obvious reasons such as affordability, taxes, landlord tenant laws, high paying jobs, and over all political environment.

No commercial business owner wants to own the building when they can triple net lease and instead just pay for furnishings, taxes , insurance and maintenance.The ConC return on a triple net leased property is far higher than on a property owned by the management company.Passive investors can still take advantage of accelerated depreciation and cost segregation thru material participation of new construction of a STVR home. 

It depends on if your priority is immediate cashflow or longterm appreciation / tax benefits. 

If we are unable to reinvest all required amount for 1031 exchange, what portion of the gains get taxed ?

And there is no function at all to import transactions from my property management companies, so I need to keep a separate set of books for things I pay and then have my accountant manually reconcile my books with the property management statements at tax time.Fourth, it's incredibly complicated and hard to learn, but the customer support is very limited and rarely helpful.

I am using a CPA to do my taxes. 

I then turn over this expense notebook to my CPA so that he can use it to offset my taxes. 2).

Additional expenses include property management at $142/month, property tax at $1700/year, and other costs like insurance and maintenance.

A DSCR loan, or Debt Service Coverage Ratio loan, is underwritten to the property income instead of your personal income/taxes/debts.

There's certainly no right or wrong answer, and as you say, everyone has their own opinion, but generally I think you will find most people on this site having the opinion that such an involved structure may be overkill (of course, no one has a crystal ball either).California is generally more cumbersome than other states when it comes to taxes and filings.