Thank you for your response!

I'm seeing other section 8 listings in the area mention that the tenant is responsible for their own appliances, so I feel like I'm missing a simple solution here or is it possible that section 8 would do the inspection, pass, and just inspect the tenants appliances later?

Well worth the price.Here's a quick guide provided by the state of California: https://landlordtenant.dre.ca.gov/resources/guidebook/gb10_m... 

Check out the linked chart below.Check out California and DC…Quick Story: Are mortgage lenders making risky loans again?

I will definitely check with a CPA. quick question regarding the summary number three:The $12,000 in negative cash flow (Total expenses less rent received ) would be subtracted from the depreciation and loan interest?

I’ve already done a few projects and I would love to shift my focus to these types of government subsidized installations.The problem I’m seing is that since units run on electricity, the tennants will be responsible for their own heating costs.

The builder was ultimately responsible until they delivered the finished product.

Take the money 😉 Yep, but would have to find that month booking pretty quick, that's that problem

Good luck and sorry you're facing this @David YamamotoThank you Steve, I agree moving forward as quickly and amicably as possible is the best route.  

In filing taxes, there is a how much mortage are you "responsible for" question, in relation to how much mortgage interest I can deduct on my tax return.