That way you have a home base that isn't sitting vacant and you are producing income. 

Many times the tenants are income based and pay 20-40% wherein only 60-80% may be guaranteed.Aside from the rent percentage issue is pride of ownership.

Thankfully, I come from a close-knit family who believed in me.That second investment turned out to be a game-changer.

Based on an inspection report on one of the deals I worked on last year, I was able to negotiate over $15k of credits and repairs for a $200k house using a $400 inspection report for one of my clients.

Not going to give here a lecture on S-corps, but take my word: no benefits, only extra hassle and extra cost, such as preparing another tax return.

I have seen loan qualifications based solely on passive investment income from rental properties, social security/disability payments, pension payments, etc. 

Just some notes to consider based on what your unit is like. 

I would not renew the lease based on multiple violations you noted, but also because you are jeopardizing your good tenants' ability to enjoy their living spaces.

Please let me know your thoughts… or if I am way off base on what you were trying to accomplish.

Since you are based in California, do you know of any good CPAs who are geared towards real estate investors ?