It takes a lot of money to control that type of portfolio outright. 

ValuePenguin is a good source for the relative cost of insurance by state.Operational Costs - Costs like property taxes, insurance cost, state income taxes, regulatory costs (ex: time and cost to evict), inspections, rent control, etc., have a tremendous impact on your return.

My best guess is that rent control will be coming in the next 2-3 years.

I've been told that due to "Force Majuere".Force majeure is a common clause in contracts which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, epidemic or sudden legal changes prevents one or both parties from fulfilling their obligations under the contract.

Previous tenants had seen some but we got pest control to treat it and it wasn't a major issue.

Use that cash to buy off-market deals (only able to be bought in cash NOT 1031 funds to be competitive) and make up the $30k you lost in taxes.

 $1900 lost rent+$900 broker fee+ $200 utilities = $3000=$1500 a year)-$150  Misc:   Ancillary stuff.

California Civil Code section 1671 controls the amount of late fees you can charge. 

Buuuuut you lost money each month to get to that point.

What this means is that the borrower nor the lender has direct control on the appraisal.