But, I'm fairly risk averse, and do live in a heavily tenant leaning area as far as regulations and court judgements. 

It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees.

Loss of use is foryour additional expenses if you can not live there due to a covered claim (ie.

Living in the Pacific Northwest, where the “Big One” could strike at any moment, I’ve been gradually selling off my portfolio to exit the market and safeguard my capital.

If they do, you may have a chance under the scenario you're proposing - if they share your concern for it's condition (although that seems unlikely since they've been living with it the way it is for some time, it seems).If you own it, it's pretty lowbrow to expect a neighbor to invest in your property. 

If you aren't going to be living in Texas then it would be tough to do a house hack there.

You can also do a live in flip where you use the equity to sell and reinvest down the road.

. - My wife and I are 33 living in SF with $250k in cash & $250k in other equities. - $6k/ month is our freedom number from a W2- Buy & Hold MFH is our plan (turnkey with PM in place)- This quad was built in 2024 and we're able to secure a 3.75% 10 year rateHow's this deal looking or would it make more sense to go another route?

I happen to live in AZ in the winter and MI in the summer. 

For reference, we're heavily involved in the co-living space, which is an unorthodox strategy but can perform exceptionally well with the right property and systems in place.