Is there something in NJ law that dictates these dates?

The type of deed only dictates the extent of the grantor's liability. 

Sorry your state basically dictates how you handle your own property.

Babysitting seem to be at the low end of the scale and as long as insurance has you covered, the risk/reward ratio may dictate to let the good tenant to do what she is doing.

This is unlike a registration system where the framework dictates what you can and cant do.

@Sarah Lewis Upfront, let me acknowledge that a I not familiar with tenancy law in CaliforniaThe answers to many of your questions will depend on what is contained in your lease, and what the tenancy law in California dictates.  

The type of house (size, updating, rent charged) for the most part, will dictate what type of renter you'll get.Wishing you success!

And you need the ability to get a several months of expenses via liquid investments or a loan (heloc/credit card/relatives). some of these options are superior to others but your risk tolerance and financial situation will dictate your approach.

Which would dictate the purchase of 1-2 more multi-family property with cash, hold a small cash reserve, and the remainder would go in to Vanguard stock index fund for long term... 

When it comes to self storage Product Mix along with a Demand analysis dictate your risk.