And I actually don't feel comfortable abusing the law for free rent from a person in the flesh. 

My current hurdle (and I'm imagining this to become more prevalent with the federal limit on property tax write offs) is that our exposure with the LLC. having a free and clear asset is large and homeowners insurance is denying us when I ask for a LLC.

I have seen swat teams raid neighboring units managed by slum lords who didn't screen tenants, I have dealt with abusive boyfriends putting my tenant in the hospital, broken down cars (which leads to them missing work because they can't afford to fix the car, which then leads to them loosing their job and then getting behind on rent), being threatened with a gun (guy lifted up his shirt showing me the gun in his belt), to countless sob stories. 

I want line of credit which when I applied at Wells Fargo was denied because I had my house debt of 120k.

I want line of credit which when I applied at Wells Fargo was denied because I had my house debt of 120k.

I want line of credit which when I applied at Wells Fargo was denied because I had my house debt of 120k.

It can also lead to abuse by tenants and neglect of properties by landlords, as there's no incentive to improve housing.If anyone doesn't know yet there's a major push for rent controls in cities across California and even at the state level (AB1506 trying to spread it to SFRs and condominiums). 

They'll deny your liability  insurance in a heartbeat for the kind of peeling paint issues we get down here.

At what point would the FHA be denied as far as the condition?

I'm sure there would be a woman with a child that was abused by a husband that would love to get out of there.