You could have much more turnover expense than you were planning.You can defend #2 easily just by stating you are looking for a 1 year lease.  

The two best options, in my opinion, are 1) a custom one created by an attorney who specializes in landlord-tenant laws and has experience in court actually enforcing/defending their lease; or 2) the California Association of Realtors Residential Lease or Month-to-Month Rental Agreement (C.A.R.

You'll also be broke because the lawyer to defend you will take A TON because you're a "rich slumlord" now!......................................... 

If the defendant wants to be represented by an attorney, 'before the judge decides the case, the defendant has the right to remove the case to the general district court by completing the Removal to General District Court form on the back of the civil warrant and giving it to the clerk or judge.'

Might be beneficial if you put down enough money to cover damages, but I really doubt that is the plan.What I'm reading here is that you may be somewhat inticed by this offer and you appear to be defending this "opportunity", I am glad to see you say that you will get advise from another attorney, hopefully they will not know this mentor or have any affiliation with him, but don't expect an attorney to trash another attorney.

I spent six years as a litigator defending property owners from personal injury claims. 

He looks like quite published and has avery relevant background to speak on such a topic: http://www.inman.com/2012/02/10/tax-reporting-tips...But there are detractors as well in the comment section, with someone (Steve Moskaluk) also very logically defending Stephen Fishman.What Stephen seems to say is: Issue $800 of 1099 to VA, issue $9.800 of 1099 to client, declare a business income of 1,000, and call it a dayOn the other hand, Buildium, PropertyWare and quite a few others like them, when you prepare your 1099 automatically at their site, prepares client 1099 for $12,000So what are we supposed to do?

If you can obtain personal jurisdiction over the defendant that is much more important than the address shown on the paperwork.

If you are talking to the right attorney they will already have this contract mastered and will have already defended it in court a few times and improved it along the way.

But if they do, you’ll have written documentation to defend.