3)You can rerecord the deed with your county for a fee and put it in the LLC, but it might trigger the due on sale clause and the lender could call the note due.

When I purchased it, the five bedroom was going for 775 a month to someone who had been there for five years.I can rent up to 3 bedrooms out without triggering the dreaded "rooming house" designation.

MM: I did not move the properties yet into the LLC because of the i just refinanced one of my rental and closed on the new rental property and may be chances of triggering the quit claim deed if i move too soon into the LLC.Maybe what you have most closely resembles a property management company in which the PM company collects rents, pays expenses on behalf of owners out of rents, and then remits net rents with a statement to owners.I don't necessary think that's optimal as you'd have to charge a fair market PM fee and would open yourself up to SE taxes on what sounds like it would otherwise be rental real estate income.MM: Yes my first rental is managed by a PM company where they collect rent and remits the rents to me with the statement.

Not knowing the complete back story and your goals, I'd say if you don't see yourself in San Jose or this house in 5 years, don't buy; but if you're thinking longer term and quality areas like Willow Glen, I also like North and West San Jose if you find a good deal now I'd pull the trigger.

You should talk to a real estate attorney or title company that works with investors in your area to ensure you are in compliance with any laws.

And I've also seen some properties that I've been interested in on the sheriff sale list but nervous to pull the trigger on any!

Pull the trigger and build that portfolio. 

But it does let you enjoy the best of your flexible living situation while maximizing the return from your capital.The next step is enjoying the different locales and then later pulling the trigger to buy a primary residence where you love best rather than choosing from primary residences you already own.  

Still haven't pulled the trigger yet but hoping to soon. 

You should talk to a real estate attorney or title company that works with investors in your area to ensure you are in compliance with any laws.