My business is so premature I don't have the 2 previous W2's to prove my income.

You're onto something but I think it may be premature.  

While it's probably premature to assess the entire situation, how do you think that these events still affect property values in downtown San Jose (where the major flooding is occurring) and ancillary areas? 

First he could lose up to 50% of the amount of premature distribution to taxes and penalties leaving him with only $10K.

I also saw that 'grants' were offered on one website, but again, I really don't want to end up a 'landlord,' or deal with hand- holding and calls and correspondences about FAQs that are answered on buyer and seller websites, after getting a small down payment... and then prematurely getting 'involved' with say sandwich LOs, etc.

Moreover, if the distribution is premature, it may be subject to early withdrawal penalties

But if you can suck it up for 5-10 years, you can probably build a strong enough financial foundation (capital for rentals) to retire from that career prematurely... hmm, sounds kind of like my own plan!

You cannot withdraw from it prematurely without incurring fees.

In fact,  it seems a bit premature to even mention it at this juncture.

Those are generally limited to things such as violations of habitability, military duty, landlord harassment.Under CA laws, landlords are required to minimize losses if a tenant prematurely vacates a rental.