Rent minus actually spent and legally deductible expenses.Step 2.

There have been multiple legal challenges to this position of the FTB (California tax department, or Franchise Tax Board), but I don't believe any CA resident won such a fight.

It’s your property and you can sell it FIBO, with an agent, by any other legal means, or give it to the ASPCA.

The reason should be communicated to the tenants.Since this is a case where the landlord wishes to terminate the lease early, the landlord may want to consider offering a cash incentive to the tenants.If the tenant doesn't agree, they're legally allowed to remain tenants until the remainder of the lease.

That said, it's certainly impacting my project in numerous ways and I will have legal expenses. 

Quote from @Tri Tran: If what you are saying is true, you could pressure her to make this right by filing a complaint with the state board.

I am currently in my third month with them and have no complaints thus far.  

Im looking at a property that has two legal units and a third that is not.

This includes everything from tenant screening, rent collection, and maintenance to managing budgets, ensuring legal compliance, and addressing tenant complaints.

I'd imagine having a roommate who also gains equity would turn into a legal nightmare when either of us decide to move.