If your occupancy rate drops, you may able to patch the damage by trying other platforms but this will further decrease your ranking on the system in the future. 

Corporations and large property managers are the future, and the hoops you need to jump thru are necessary because of too much legislation.

And even it's SF when you purchase it, again because it's not 100% MF including the county/city classification, you can use rental income from both units to help you qualify for future investments.Option #3 is something to use only when you're not willing or able to move into the property.

the economy is super promising and the future looks bright as far as appreciation goes.

CA acts in a neglectful arrogant manner, assume historical greatness will automatically deliver future greatness.

Essentially you are creating future tax free income by being able to roll over these losses.If your income is between $100,000 and $150,000, a portion of that $150 loss is deductible and the rest rolls forward.If your income is less than $100,000, your loss is fully deductible - and THAT's the cool thing about rental income. 

I am creating an llc with a couple friends as we go into this new endeavor.

On the other hand, I've been a lender for over 30 years and I can say for certain that past predicts the future when it comes to paying bills.

We had vacationed there for years and viewed it as a place for future retirement.

Then the tenant will rant a bunch of nonsense, have no evidence to back up his stories, and the judge will find in your favor based on the evidence provided by you.For future tenants, I highly recommend you read a book like mine or "Every Landlord's Legal Guide" by NOLO.