So if Section 8 is only accountable to pay 50% of their rent you will still have to collect the rest from them - regardless of how much Section 8 recognizes the comparable rents, the tenant may not be able to pay the difference and only you lose - Section 8 and the tenant will likely not really care about your loss.3.

Also, CA does not recognize series LLCs so be careful when seeking advice from non-CA folks since it's sort of a state heavy on regulations and rules. 

That's my goal for this year.The one thing about Los Angeles that most investors OOS don't recognize is the crazy equity play potential...unlike many other states.   

Escheat ensures that property always has a recognized owner, which would be the state or government if no other claimants to ownership exist.

I can tell you that RS Means (https://www.rsmeans.com/) produces data that is fairly widely recognized for construction "guess-timating."

If my CPA keeps doing his magic and itemize it to where it reflects I made 0$ for that year, wil it still create history for my LLC where the Bank wil recognize the rental monthly income and include my rental income in the Debt to Income Ratio?

Note, I do recognize my contractor will Need to complete all FHA required repairs ie repairing peeling paint etc.

That is why insider sales of stock are closely watched even though we all recognize the value of diversification or the desire to spend earnings on consumables.

If this is what you do and you are a developer/builder then you could be classified as a dealer with inventory so profits would be recognized as ordinary income. 

Check with a local  mortgage broker.Good call to check and make sure the City recognizes that building as a 5 unit.