I work with conservative investors who come to me for 3 things: 1) A way to protect & grow their wealth and assets without exposure to the volatile stock market. 2) A superior secured source of income as an alternative to low interest Bank C.D.'

Down the road you will most likely need to have another llc in order to diversify your risk exposure on your hold properties anyway.

I would take pictures of the mold, and speak with the landlord and show her the pictures and even consult with an attorney, especially since I am not sure what the long term health effect of mold exposure.

However, you reduce your exposure as much as you can. 

This leaves you open to so much exposure ---- many will trash your place and not care ; they won't take pride in ownership of something being handed to them.Also for $140k ; your loan is going to be around $1000/month.

Your main focus should be on pricing the property right and getting as much exposure as possible.

There are, indeed, many other websites and resources out there similar to Airbnb - as well as sites that cater more specifically to backpackers, since you asked - so there is plenty of exposure to grab a hold on.With that said, shorting the market with one unit would probably equal 100% occupancy (given the figures you're talking about so far)...but with 20 units, you're in a completely different ballgame. 

You'll get top dollar and more exposure.

I, for one, already have California real estate exposure (in my home) so would rather not limit my diversification when it is so easy to diversify to so many completely different markets.  

I have had little exposure to medical office and have never managed specific medical only.I would echo the sentiment of engaging a leasing broker who specializes in the type and size of tenant you intend to attract.