An example of this would be mixing your personal money and LLC money in the same bank account.3.

I've never spent money on inspections/environmental before having the property under contract.

Is it the CA department of real estate?

If they don't, then you file a claim and hope the insurance company squeezes the money from the tenant.Get rid of this tenant.

As far as benefit to the seller goes, @Matthew Paul I think you are probably right on the money and regardless of whether they would have preferred to stay in this house rather than move, it is likely providing them some excellent cash flow; and I'd be hard-pressed to come up with a deal that serves both parties better than the current situation. 

But if I sell it and put that money in the stock market and earn let’s say 8% I would make $40,000 on the same money.  

Are you a buyer in the Arizona Market? Let's connect so I can get you on my exclusive investors list. We are selling properties first come first serve. 

Explore my personal favorites, Set For Life by Scott Trench or The Total Money Makeover by Dave Ramsey, for invaluable financial insights.3.

I view real estate investing as another wealth building tool in my tool kit.

Risk goes hand in hand with the amount of money you stand to make.