This is legal under Costa Hawkins and I'm comfortable taking on the lease individually, but am not sure how to explain the situation to new housemates.

That being said the obligatory caveat of me not being a legal professional and this not being sound legal advice from a reliable source needs to be typed.

Fannie Mae does not acknowledge the legal fiction that someone owning an LLC that owns a house does not own the house.

Due to that he is attempting to talk to both of you in an effort to avoid legal hassles.

Do not rely on it for legal advice.

What are the bare minimum requirements I should request in a written agreement/legal document with this individual to best protect my asset in case his investment fails or falls short.

Do not rely on it for legal advice.

Theoretically speaking...If I were to purchase a two-unit property with an FHA loan and only rented out 1 of the units for the first year but didn't live in the second because I was able to live with my parents would there be a legal problem with that?

Also important to note that certain areas may have restrictions on vacation rentals.

I know it varies on the legalities state by state, but how many of you earn a little bit on your deposits by placing them in a brokerage account?