The idea was to diversify and supplement our retirement income.  

I probably wouldn't do a whole building of S8, but it is a nice supplement. 

Or are you looking to increase your cash flow to supplement/offset some of your income?

No...Umbrella Insurance is a supplemental policy to your property insurance that kicks in if the costs exceed that of the property insurance. 

I'm currently renting in Orange County, so my goals are to 1) look for a permanent residence to purchase and 2) start with 1-2 rental investments as additional assets to supplement my income.

Problem we ran into is: If she supplements her families living expenses, the state will withdraw any benefits they are currently receiving. 

Just to clarify, there will not be entitlement nor LADWP, this is a tenant improvement interior project where the permit is approved (We just need supplemental for non-bearing wall layout change) and we're decreasing occupancy.

That way if they grow - erm "herbal products", they'll at least be on the hook for the bill for the power that comes from the utility above your system's capability.

For SD in 2022, it's $106,900/yr- 620 credit- Mandatory HomeReady Education Counseling- 3% down- Boarder Income Qualification can only supplement up to 30% of all qualifying income- Documented evidence of prior shared residency for the most recent 12 months- Of the Documented Evidence, the “boarder” has been paying part of the rent for at least 9 out of the most recent 12 months.

For anything other than that if you are starting out small, I second @shanechapin Eastside realty management is a good choice to supplement a remote self management system.