Our conversations now focus less on the music we played together in local San Diego bands all those years ago, and have lately begun to gravitate more to what we're gonna leave behind for our little ones in the future. 

They also told me that they are looking to rent the place for at least 3 more years, which is music to my years, because these tenants have been great and it is really hard to find legit tenants in my area.

One cannot be done without the other and both functions are critical elements tied to the other.Renovation costs can be represented as a single line item along with other project costs, however, just like Operating Expenses, the more detailed line items identified that compose renovation costs, the better.The only way to get "unstuck" estimating renovation costs is to create a robust list of all of the work that needs to be done (required repairs) as well as the work that you'd "like" to see done (elective additions and repairs). 

So I’m getting into wholesale real estate and right now I’m trying to compose a contract that I can provide to the seller as well as an addendum.

If you were to use the second unit for airbnb you would need to set the exception on your airbnb listing that no parties or events are allowed, music cant be loud after 10 pm , etc .. and what your minimum person occupancy would be and plan your calendar accordingly for when you would be using it. 

He cleans them up, puts up decorative lights and speakers for music and then leases out sections of it to local food truck vendors.

But lets just say that, I have allowed my friends to stay in my basement while i stay on the ground floor, because he is in transition period and i trust him to do no harm to me or my house, I dont get any rental income what so ever, and i dont get into troubles for letting my dear friends use my basement. my example is not good for legalities if one of us get into a a fight or have concerns or if neighbors have concerns related to loud music or suspicious activity in the night. 

Its composed of the Beach House AND a Garage Apartment.

An LLC is composed of members and the Managing Member typically has control of the day to day conduct of the business and has the authority to make all major decisions like purchases, financing and sale.If you elect to structure an LLC, make sure that control issues are clearly spelled out.

I pity the near neighbors having to put up with ear splitting “music”, all kinds of guys in and out, probably a couple pit bulls running loose, etc.