One thing to consider since you are a California resident investing is the compliance requirements for LLCs incorporated in California or operating as a foreign entity here - the rules here are different than most states.  

Some areas allow commercially zoned properties to share one large septic system (think sandmound or gravel type system) or would they require an individual on-lot septic? 

And I can recall only once that a title company released earnest money to the Buyer without requiring the mutual release - worked out in my Buyer client's favor so I didn't complain.

There is 1 catch and 1 only that can lesson this requirement.

In short, I can afford the additional $1100/mo cost of a second house, even until I rent it out.I have around $35K in HYSA and emergency funds that I could use for a down payment, but that's less than 20% which would be required for a conventional loan, assuming full purchase price.

Being the military, it had that definite institutional overtone to it, but the basic premise was the same.I recently toured a new senior's complex in which on end - for those who were still relatively self sufficient - had individual units (bedroom, sitting room / kitchenette ... effectively a bachelor apartment but without a full kitchen) clustered together in groups of 4 with their own common room / kitchen and courtyard.On the other side of the complex were units for those who required more assisted living.  

Agree Google nmls - funny on Facebook where 99% of private lending groups that are public are scam artists you get the "well license isn't required"I reply to this noting that while you are correct in some states - chances of a scammer with a nmls license are less than 1% while those without is 99% on sociale media 

They do require that person to have no assets, so a house in her name could be problematic.

Do not expect to keep them and be prepared to have to evict.If the jurisdiction this property is in requires anything in place in order to evict such as rental licenses, etc., get them in place before discussing an increase with the tenant because it's much easier to get inspections and repairs done when the tenant cooperates.

Let them move in with a deposit and first months rent.