I'm not 100% committed either way between the income benefits of multifamily vs. the reduced headaches of SFH tenants.

With that in mind, which approach do you think works best:1.Use property management software (PMS) as an intermediary to automate payments and fee splits while reducing legal risk and simplifying operations?

I suspect this will increase as the people who lost homes do not want to live in hotels and, as the high season approaches, the hotels will be less inclined to provide reduced rates to the fire victims.I hope no one from out of state decides to move to San Diego until this housing situation is stabilized.i wish all the fire victims the best and success finding replacement housing.  

Lots of new supply now with reduced demand.

Per the mutual agreement between the Lessor and the Tenant, the Lessor has agreed to reduce the monthly rent from $3,200 to $3,100, allowing the Tenant to repaint portions of the house at their own expense.

More and more investors are looking to assume low-interest loans rather than deal with reduced cashflow thanks to today's interest rates. 

Before you do so, make sure that it will, in fact, reduce your current year's taxes.

I will be at the mercy of them for the next year unfortunately, hopefully I have few maintenance issues, this will reduce the opportunities for them to up charge.  

Personally I’d stick with SFR or at 4 units or less for preferred financing and to reduce risk of the exchange failing.

These expenses can create a paper loss, which may offset other passive income or carry forward to future years.If you qualify for Real Estate Professional Status (REPS) or actively manage a Short-Term Rental (STR), the losses can be applied against your active W-2 or business income, reducing your overall tax liability.