Here are a few options you might consider:Home Equity Loan or HELOC: If you own another property with sufficient equity, you might be able to take out a home equity loan or a home equity line of credit (HELOC) to cover the $140K.

I don't all sleep well with debt, so I'd pay down debt first.

So, obtain sufficient insurance if you don't have an LLC. 

Your primary insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5.

While it only returns 5.23% currently, it provides a great cushion allowing sufficient time to wait out a crash without having to resort to selling properties at inopportune times - at fire sale prices.5- I keep a large part of my portfolio in high yielding notes secured by real property - and while I want every loan to make payments as agreed, my experience indicates that a certain percentage will default with me owning the property during periods of economic contraction.

As far as setting up a place for you to live, if you don't find the vibe in Reno you could look at Carson City so you can easily still work on your properties in Reno and sleep in your own bed plus you are close to all of the outdoor activities at Lake Tahoe.

So the 1% rule which is a unicorn find in San Diego is not sufficient to have positive cash flow at high LTV.  

I don't think he sleeps.

Pretty sure you will be ok either way so I would t lose too much sleep over it.  

This includes subleasing his bedroom while at ucsb and sleeping in his car.