Days wind down and now they have a (knee jerk) reaction and buy something non-optimal for a property just to avoid tax penalties.Had they been realistic starting out they would have had time to locate quality properties to buy instead of looking for a Unicorn.

You would have to line up carriers that accept LLCs on non-owner-occupied dwelling coverage.

Storm sewer, storm pond, sewer lines, water access, fire hydrants, public bathrooms, surface coverage, sidewalk or bike paths, setbacks, power lines and right of ways known and unknown, road access, etc. 5.

Perhaps they offer a favorable refinance option if the property has appreciated to the point where the current loan amount satisfies their non physician loan LTV underwriting.

There’s a separate kitchen and living space on each level, acting as a non-conforming up/down duplex. 

The problem is that non-government jobs aren't permanent.

Most LLCs are set up for liability protection or similar non-tax reasons, and especially in CA, the penalties for "non authorized" practice of law are steep that a lot of CPAs will not even form the LLC for their clients. 

It may limit attic space, however you should have plenty of room for Airhandlers, Waterheaters, etc. in the non-living area of the home on the ground floor.

Texas is a non-disclosure state.

Not to get too into the weeds, when you are face to face with someone, you can watch for mannerisms and non-verbal body language.