One thing that hasn't been brought up is if you put a property in an LLC, it MAY be subject to California Rent Control, even if it is a single family home.

Walk us through a solution that doesn't involve government command and control.

I would like to be in control of my money, so I have always gone with the highest deductible posable and maximized cashflow.  

What's the exit strategy if any, for the investor, given that, with 50%, he has no control and the market there is illiquid, especially when the HELOCs out of North American properties are much more expensive.Properties in Costa Rica are already expensive and I've tried many times to make a potential investment there work and it's never worked with the figures.

Your strategy takes advantage of your employment cash flow and ability to control discretionary spending.  

Neither VRBO nor Airbnb are vetting guests, either.The best you can do is have some internal controls, such as minimum number of nights.

Trump doesn't control them, but he's going to try everything he can to bring mortgage rates down.

The lessons you learned the hard way in 2008 will be invaluable now, and it’s great that you’re aiming to stay small-scale and within your comfort zone of Sacramento, which gives you an advantage of knowledge in that market.Given your experience, I'd say start by focusing on three key areas to build confidence and minimize risks:Budget Control: Over-renovating was one of the big mistakes you mentioned.

Pricing tools that exist on the market are decent, but you also need to know how to control it, otherwise, it will go nuts with unrealistic rates far out and extreme last-minute discounts. 

The sooner you regain control, prove that you fully intend to enforce the terms of your lease, and that you will not be 'played' by their recall of events or documents, the more effective this action will be.