We have a good apartment in socal in an area close to wife’s parents and looking to have children soon so want to stay close vs moving now.

At the time, it was not so much thought of as an investment as it was a place I thought would be perfect to raise my children.

So far I've been really happy with the investment and hope to pass this home down to my children one day!

For example getting settled prior to the school year starting for their children in a new school district.

They are obviously not able to stay there with 2 children under 3, it is just unsafe.

We do not have children together.

But I’ve been given the reins of the business and am hoping to learn and grow into something that can build a level of generational wealth that will benefit my family (siblings, cousins, and children) for years to come.But I am filled with doubt in myself and skepticism about how real the success stories really are.

I have asked my tenants to confirm their contact info and names of all people living in the house including name and age of their children. 

You sound like you are trying to house hack like a single professional, not as a married couple with children.

Brian Douglas has a lot of great advice about asset protection and taking care of children through estates.