Quote from @Keith Barnum: I am not an investor, well, not an investor of real estate property.

In my case it is defined as follows:- unresponsive by 15, written notice in the door.- unresponsive by 30, eviction process starts- excuses with no payment by the 30, eviction process startsThey can simply delay this by making small payments, communicating properly and proposing solutions.Don't feel bad to file an eviction, one way to look at it if that they will learn from it.

If you make the membership of this entity the members of the other 2 LLCs then you've also probably simplified and defined decision making power as well. 

@Markwon TurnerTo kickstart your real estate journey, define your goals and strategy, explore short-term and long-term strategies like house-hacking, buy-and-hold, fix-and-flip, and wholesaler.

Does anyone know how this is defined legally in CA?

First, there are the laws and regulations being created that require “wholesaling” as we’ve come to define it, to require a real estate broker license.

Be interested in what your thoughts are to include this in a lease (needs to be maintained to some defined degree of cleanliness rather than waiting until move-out and deduct cleaning charges from their deposit).

Clearly define each person's roles, contributions, and responsibilities.

How is material participation defined?

The only reason you'll fail is if you let others define who you are.Thanks for sharing!