HUD does not factor into the rent other amenities that might be included in the rent such as garage, basement, fieplace, central air, pool etc, that might command higher rent in the non-Section 8 market place. 

A non-franchised Broker with six agents won't have professional training and resources, so a new agent won't be trained as well and will struggle to get started. 

As a rental strategy for non owner occupants, it absolutely is a fantastic way to generate the highest return, that's true.....but also, and most importantly, your screening has to be on point, and without that, it won't be as effective because one bad roommate can ruin the environment for the other roommate tenants. 

I'd insist that he find a non-related handyman or change PM's.I agree a huge red flag to me is 24 hours of labor.

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.

Quote from @Paige Seeley: @Jay Hurst even with 20% down, what non conventional options are you talking about? 

Matt Scott, Incite Venture Capital and his team can be summarized as follows: over priced, non responsive, non professional agreement breaking, chip on their shoulder and otherwise a bad investment.

If borrowing, use a non-recourse loan since personal guarantees aren't allowed.

Head over to bank rate or and take a look at the mortgage calculators, plug in the numbers and get an idea of what the property needs to generate to satisfy the intended debt.You still have to underwrite the deal for the non-finance expenses as well(typically 40-50% of the gross rents). 

They are usurping your property for the benefit of the public.