We can still choose how much to pay someone to operate it if necessary.

15% down with no STR experience - you're going to have to pay a price for that.

I do not understand your remark as related to the DSCR loan.  2 ADUs are not allowed by f/f conventional financing but is not always enforced.Fortunately if you stay with the current tenant without a refi, by the time you pay principle it is likely the rent will have increased enough to absorb the increase mortgage payment. 

This means that you will probably need to pay registration and filing fees in at least 2 states if you don’t buy CA property as a CA resident.Any lawsuits should be limited to the assets of the LLC and not your personal assets (assuming you run the LLC appropriately and the corporate veil is not pierced, some debate as to SMLLC).

That means paying all cash isn’t an option unless you plan to bring another $600k to the table. . 

HCV in the area pays $2,200.

buy house  find renter rent house maintain house pray they pay rent and dont destroy it.

Keep in mind you will probably have a deductable to pay first.

We almost went with a loan that we have to pay all the cost upfront and then get reimbursed on the back end and that was just not something we were willing to do.

If I identified the offender, I would probably bill them back for the wasted water and when they didn't pay evict them, or non-renew them if their lease was near the end because that is simpler.