If the LLC and its income are entirely outside California, it typically does not require registration with the California Secretary of State (SOS) or payment of California Franchise Tax Board (FTB) fees, even if you reside in California.

It's a more involved discussion that requires one on one communication and no, joining a "community" does not prepare you.

The seller and their agent hopefully did a good job communicating with that tenant to set expectations.

I learned enough (in summary) what they needed to do their job in getting my funding to make it easier on myself.

Regardless, guy did a great job so not going to complain about order of operations, but I am in a bit of pickle. 

The real prohibitive costs come from the legal, compliance, and reporting requirements of registering a security.

This attorney should handle creation of your PPM and state filing requirements, but they do not handle the PSA or closing. 

If you eventually convert the property to your primary residence and later sell it, the taxes would be prorated based on the ratio of time the property was investment property.These items should be addressed and discussed with your tax and legal counsel to ensure that the exchange is the best course of action given the restrictions and requirements. 

If you wanted to earn $200k to live on at a W2 job....you'd need to earn significantly more because you'd have to pay income taxes, and payroll taxes on the income; where as taking on debt isn't taxable at all. 

A partnership requires three things to be successful - Experience, Capital and Time.It looks like you have the capital and experience but maybe not the time.I have my doubts about this working if you have a friend who has weak credit and a limited cash flow.