I would suggest instead giving them notice to move (tell them you've decided to sell, if you want; in California a landlord does not need to give a tenant any reason for notice but it may convince them a little more strongly).Please don't think that this, my second reply to you on this forum, is meant to scare you; I have been doing this for almost 40 years and certainly don't know it all, but I have dealt with precisely this issue and I see the warning signs.

Is this warning sign to stay out of the area?

Any insight/advice/warnings are welcome.

I bet,, 0  Zero.. or limited to cost of inspection.. a negative review on Yelp or their website might be about the best way to warn others.. 

For example I manage my parents (early 60's, dad still working) finances and I have them in 30% stocks, 40% bonds, and 25% real estate (they paid off their house) with 5% in some other things.However for me, and my siblings ~late 20's early 30's I have more like 60-70% in stocks and similar categories.Diversification across asset classes is really important, but I will warn you there is A LOT going on in finance, with the markets, and central banks.

Your best option might be a limited partnership (LP) where you are the general partner so you can have full control.Be warned that the GP can be personally liable in some circumstances so you may want to create an LLC that you own to serve as the GP.Then you would have a partnership agreement which would spell out the agreement of the parties and rules for operation.As mentioned above, it's best to consult an attorney who specializes in RE for all of this.Good Luck,Bob

Warning this is going to be long!

There will only be a few brokerage shops that specialize in this...for example, Dallas is a huge market for multifamily but there are only about a dozen or less brokerage houses there that sell large multifamily, and out of that dozen, there are probably 3-5 of them that sell the majority of the product.I'll warn you, this isn't easy and it's a relationship business. 

My brother in law is a real estate agent in Salt Lake and I'll warn you prices are very high down there right now.

My husband called the lawyer at that point (I had him do it because he knows the mortgage industry much better than I do, and it turned out he and the lawyer had some colleagues in common.)Dealing with the lawyer was a little frustrating, because he was obviously pretty unfamiliar with sub2s and kept dramatically warning the seller about the potential pitfalls (the mortgage remains in his name, etc.)Eventually, we worked it out by putting these two clauses in the contract. 1) If we miss one payment, the seller can take the house back. 2) We will refinance into our names within three years.After the paperwork was finished, we mailed a check for $1,200 to the lawyer and he sent us the paperwork.After that, we did more waiting for the seller to be ready.I emailed the seller at the end of April reminding him the paperwork would expire at the end of the month and we'd need to have the docs updated if we didn't sign them before then.He said he needed another few weeks to get ready.