problem with non-CA is that their food selection is not good and not many high pay job offering compare to CA, the latest part is actually what drives CA home price price to the sky.

Otherwise prepare your plan when the downstairs tenant says they’re leaving because of the upstairs noise.

How can I be prepared? 

They called this PM and he prepared all the paperwork, rental estimates, etc. 

I assumed that we would end up basically owing nothing since depreciation, repairs and non-principle portion of our mortgage payment on the house greatly outstripped the amount paid toward principle.The tax preparer said we had to pay taxes on essentially the entire rental payment since our income was basically at 150k.

Do a search online, make some calls, choose one, and prepare for the long fight.

Be prepared to visit this same area 2-3 times(maybe just on weekends) to get a real feel for the city, the areas, etc., and once you build a network of off-market folks, an understanding of the neighborhood you can take full advantage of the stuff they are showing you.Right now, you're a casual shopper looking at the retail stores wanting the bargains.

When it comes to negotiating a price, it helps to have information about the market value of similar properties and be prepared to negotiate.

Will small business follow (food trucks, bars)?

However, like @Ellis San Jose mentioned above, you will command more $$$ for your property if it is delivered vacant (unless you are getting top market rent for that unit).If you do sell with tenants, be prepared when the prospective buyer requests rent rolls, estoppel certificates, rent history, existing leases, rent due dates, security deposits, and any other written or verbal agreements.