Another avenue would be to call your utility companies and ask about installing additional meters.

1) Research Zoning of similar property2) Do search with same zoning criteria with propertyradar or have title company give you a list.3) Possibly filter by satellite photos to eliminate undesirable topography.

Deposits from the tenant.Security deposits from the tenant in residential dwelling units shall be deposited in a trust account with a licensed and federally insured depository institution lawfully doing business in this State or the landlord may, at his option, furnish a bond from an insurance company licensed to do business in North Carolina.

If you don't plan on paying cash and have to leverage with an owner-occupied loan product then you should set up your LLC as a property management company because you will not be able to borrow in the name of the LLC.  

And being in California, you really should be using licensed companies for everything.

We are considering becoming a private lender with them and I am doing some background research on him and his companies and wondering if anyone has done any deals with them.

A professional trustee such as Exeter Trust Company is the way to go if you want it done right, imo. 

We don't expect to collect money back when we send them to the collection companies.

The specialist I recommend you have is an attorney to properly draft the documents and a title company to facilitate the deal.

They want them all jammed in large apartment complexes, run by large companies, in concentrated areas, away from them.