I think the judicial council is voting this upcoming week on lifting their restrictions.

Review your loan agreement for restrictions, and consult legal and tax professionals to ensure compliance and protect your interests.In C State, you can elect to file MMLLC as disregarded entity for tax reasons.

They can definitely tell you what you need to know legally and licensing wise in NJ/NY as there are some restrictions in certain states and I think NJ is one of them. 

Even though there is a tenant there now, the association could restrict or limit renters there.

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

In Canada, for example, the average mortgage term is 5-years, so every 5-years you renew your mortgage and have the opportunity to pay down as much as you would like (if you wanted to pay more than the payment restrictions of a fixed-rate mortgage).If you want to pay down your mortgage more quickly and cannot afford to increase your payment, simply switching from the default monthly mortgage payment to accelerated bi-weekly payments will reduce your amortization by ~12% (the extra payment per year from the accelerated part) and reduce the overall interest paid by slightly more (~14%).Naturally, if you increase the bi-weekly payment, you will pay down the mortgage more quickly.  

If I was the originator on this loan (loan officer, lender, or whatever title is used), I would have made this restriction very clear to my borrower if they had explained that they wanted to eventually use the property as a rental.

if not, you might be restricted to more passive options. 

I have experienced subletting working under some very restrictive and specific conditions.  

This isn’t 1979 where you’re restricted to properties “within a2 hour driving distance”.