the key to investing in these types of deals is just like you just said.. you can lose the money and not change your lifestyle..

The proper answer is "it depends" I don't know anything about your case.I do prefer simple over unnecessary complexity.

Buyers Want More Than a Pretty HouseSan Diego buyers are discerning, and they don’t just want a house that looks nice—they want one that functions well and reflects their lifestyle.

@Jordan Meltzer unless you find a screaming deal - a Class A property won't cashflow for 3-5 years.Class B: 1-3 years.Class C: most investors don't properly understand the risks, so should stay away from them.So, you may need to deal with negative cashflow, but plan on appreciation increasing your wealth.

And here is where I actually got properly annoyed. 

If transferring the property to an LLC, be mindful of the due-on-sale clause, and note that an LLC itself does not offer tax savings unless electing S-Corp status, which is rare for rentals.To maximize tax benefits, consider cost segregation, bonus depreciation, and short-term rental (STR) strategies, which could allow you to offset W-2 income if structured properly.

This will get you the name on the dog on record designating that specific animal as their ESA.Good idea -- AND ask for additional rent/deposit, unless there is some legislation forbidding it for a properly registered service animal.My humble opinion, all this "emotional support" stuff is simply BS so they can take their precious animals everywhere they go and not have pay extra.

Your life style has lead you to this situation and you must change your lifestyle in order to be successful with real estate. 

How would you recommend, or what resources would you refer for us to properly figure out how we spend our time and appropriately get compensated for it?

Take ownership of your mistake and learn to do the proper due diligence recommended above😊