This analysis is purely for educational purposes and is for a course capstone project.Any thoughts/feedback would be super helpful.

I have found that most have had a positive response to having section 8 tenants.

Both groups are showing up with a clear purpose, need a good night's rest and want a safe place to live close to where they work/study. 

My response will focus on your option #3 "Continuing to rent where we live, and buy a separate property to rent out"A while back I lived in rental property but owned rentals in another state.

I am looking to invest in Temecula,CA  with the purpose of renting bedrooms to traveling nurses.  

I am sure RR will jump in there they are pretty responsive to helping their clients.

@Jonathan Greene you didn't, that comment was more in reference to other responses on the thread.

The purpose of investing in a syndication is to leverage the sponsor's time, expertise and ability to source great deals, but if the experience is going to cause you to lose sleep at night, the return may not be worth it.

I just typed out a response TWICE and both times this site killed my response for one reason or another.

I only ask because the main purpose of an LLC is legal protection, and if you don't have a large amount of assets to protect, say less than $1M...you may be putting the cart before the house, and it may make more sense for you to focus more on finding and closing more deals.