Most credit issues can be addressed in some way.

@Justin FondrenIf your credit score is in the 700–730 range, you're in a great position to secure favorable loan terms.

I enjoy tenants turnover ever few years for the reason fair market rents tend to increase significantly year over year. 

I think they used to go up to like 80-85% CLTV depending on credit score.

Selling your share at fair market value could avoid gift tax but may trigger capital gains tax for you based on the sale price and your cost basis.In California, the transfer may also trigger a property tax reassessment under Proposition 13 unless a specific exemption applies.

Bank Credit Line How did you add value to the deal?

A lawyer might be able to answer this better, but most rentals fall under fair housing laws (there are exceptions) and that protects against discrimination based on familial status which means children or someone who is pregnant.

It was a personal referral, received a credit at closing for renovations as well How did you finance this deal?

So I put $1600 on a credit card for a down payment and then pay $500 a month until the full amount was paid off.

. - I will ding their credit such that all credit cards and other debt will cost them more.- I will keep their security deposit for funds owed.- I will do my best to garnish future wages until their debt to me is paid in full.This has worked 100% time so far.