Whether you choose to run screening before you show the unit to them is a personal choice. 

We have a few markets we target outside of California, but obviously if you want to stay close to home, Sacramento would be an ideal choice.

Lots of good choices! 

I understand why this is the choice asset for many: they are inexpensive with no barrier & easily financed (easily attainable). 

Hiring a good property manager may cost more upfront, but it’s often the better long-term choice, especially if you want to avoid burnout or costly mistakes.Happy to dive deeper into any of these points if it helps!

If you prefer a nicer home with future equity growth, White House might be the better choice.

Hey Steven - An LLC is a solid choice for structuring your partnership since it offers liability protection and keeps things clean when splitting ownership and profits.

If not, ride out the 12 months with the hard money lender.People have to make good choices and not over extend themselves just for the sake of buying something they really can't afford or that doesn't make good cash flow.

Should it simply be one of two choices: deny application or accept application with ESA exemption even if the property qualifies for the FHA exemption?

Consult with competent legal counsel to guide you regardless of your choice here.