Often there is a process to withhold rent and deposit it with the court until the issue is resolved.

If the students do not have the income or credit to warrant the rent amount, I would require that they get a cosigner (like a parent or another relative that can vouch for them).

I am aware of California's Prop 13+58+19 prop tax inheritance evolution and its complexities with LLCs but we are not considering inheritance or parent->child gifting etc.

Raised the 25% down payment through a partnership with family members (my parents and my two oldest children).

Last Monday they informed me that his parents are staying with them for a "few days" It has been a week and they have failed to offer any end date.

@Matt J.As an out-of-state investor in San Diego, key tax and legal considerations include filing a California non-resident tax return for rental income or capital gains, managing double taxation with potential tax credits from your home state, and complying with withholding requirements on property sales.

looking at your breakdown, the margin leaves very little room for error, especially with holding costs and commissions eating into your profit. 

I decided to go with one bank account for the parent LLC.

I grew up in the industry and still have a hard time with holding contractors accountable.

The terms Subsidiary LLC and Parent LLC don’t mean much on their own—they just describe one LLC owning others.