I do not do business in CA under any circumstances.

I'm not sure how they can not see it was not an "act of god" with the circumstances.

@Karin RecaldeI've had to legalize circumstances you and @Gino Barbaro have stated.

Under no circumstances should the tenant ever burn scrap lumber in a fireplace.

The property is old so we are having unforeseen expenses.

Handling Unforseen DelaysA clause should address unexpected events beyond human control, including weather-related delays, natural disasters, supply chain disruptions, or unforeseen structural issues.

Unless you have unusual circumstances such as a month of DIY repairs on one of the houses, your wife would need to find more real estate work for herself. 

The renovation costs may include a contingency reserve and renovation-related costs.Contingency Reserves:Contingency reserves 10 % required for any unforeseen cost overruns that may occur during construction.Unused contingency reserves that were financed into the loan will be applied to the principal balance of the loan.

Hi @Brandon MorganI'm a little late to the party here, but whether or not to get an LLC is something many real estate investors consider, and it often depends on your specific goals and circumstances.

I just want to explain my circumstances and see how people with experience and knowledge in real estate would move forward if they were in my shoes.