(I could with lots of leverage, and without much diversification...so effectively, I can't)

State taxes should have a minimal effect on evaluation if you live in CA (excluding property tax) because my understanding of how the income would be taxed is (state income was generated in taxes first if it is a higher rate than CA no further tax, if it is lower rate CA takes what you paid the other state into account and taxes the rest of the way up to their normal rate)  Hopefully that made a bit of sense it is difficult to explain in text format.

Deposit doesnt get returned till the property is vacated and broom clean and penalties for damages or late rents are deducted.You need to talk with the boyfriend, see if he plans on renewing lease on his own or vacating. 

These repairs were inline with the work that was previously done in 2008 and 2012 by a separate company.Now here is the funny part...The seller and the seller's agent both believe the home doesn't have any foundation issues because of the engineer's letter despite the visible damage and the home inspection and the pier company's investigation. 

Any comments made by your family could effect you. 

If you are not - it's not cheaper, it's a HUGE brain damage, + assembly will take time (days, sometimes a week) so you'll be loosing money because the property is not on the market. 

Right, but I don’t want to evict and risk property damage or for them to become a tenant at sufferance living for free for 6 months.

How do you handle a tenant who won't move outHow do you handle tenants doing damages?

The domino effect will eat your equity as well as life savings.Unload the properties while you think it is the peak price. 

If the landlord is responsible, there may be a way you can seek damages as that's putting you and your family in danger.