Add Probates to your mailing campaignBuild a driving for dollars list and leave a note on the door, track them down, mail a letter to taxpayer address and call them if you can find a number.In todays "up" market, marketing responses typically decrease since sellers are getting pounded by everyone, they can just put a FSBO sign out or CL ad and get callers. 

There is no reason for the tax payers to financially support it when about 99% of them wish the mailers were not coming in the mail.I know the information comes from the CAD.

If this was just an ordinary old vacant home and our circumstances were different we would be likely to respond to the mailer. 

I think I understand this correctly but I'm hoping you can confirm the process:Buyer and seller agree to owner finance and decide on sales price, amortization, interest rate, and balloon scheduleBuyer allows seller to "keep" his portion of tax payments, and his rent income for the month of closing (the 'credits')Seller transfers the tenants' security deposits to buyerBack these credits out of the sales price to get the actual note amount and actual monthly paymentSit pretty for a few years on your cash flowWhen balloon is due, go to a big institutional lender and cash-out refinance to pay the balloon.Profit!

When they raise the rates like this does the tenant actually have to come up with the extra money, or do we, the taxpayers?

Otherwise you need to fill out form 3115 which is above most taxpayer's heads.

It looks like I will have about 30K Income from my business this year on my K-1 form, 40K from "Interest Income" that was earned in a Universal Life Insurance contract that I have withdrawn (my understanding is that this is 'ordinary income and NOT capital gains). 

So you will be taxed your ordinary income tax bracket + self employment tax 2.

The problem with California's current income tax withholding law is that the calculation of the mandatory withholding requirement of 3 1/3% is based on the taxpayer's gross sales price and bears absolutely no relationship to the taxpayer's actual capital gain income tax liability.

I ask this as a hypothetical assuming ejectment letters and actions have not been completed for lack of response from taxpayer.