I invite you to Google "Creating a LLC or S Corp in California," "Division of Corporations in California," or another phrase.

Outside of that segment the trend is following the sales trends (upward).  

I hope you have a cancellation phrase that you will be entitled to something if they cancel.

The 4pm to midnight shift would be the better one to quit in terms of meeting most clients' time availability.I have to admit that I'm a bit disturbed about the phrase "trying my luck selling some homes".  

Now, I need your help to ask the right questions to figure out how to make it a GREAT deal (thanks for that phrase @Brandon Turner!)

Even in very exacting jobs (e.g. space craft design), where even a small mistake is literally a mission critical life & death issue, they use 'rules' to avoid over-engineering (or to use another phrase 'analysis paralysis').The 'rules' for real estate investing are not intended to be exact or fully comprehensive.

I bought a wonderful duplex 2 years ago in a trendy area where applicants are lined up looking for rentals.

If you do not, this sounds like a potentially very rough way to learn about them.To me the key phrase in your post is "they can't get a loan because of their credit score".

My thought process is to always protect my assets on the front end because that phrase "you never know" can be very costly if something happens and your tenant sues you.

Black cops turned up, even the complaint we made at the local Deputy post was made to a black woman who seemed utterly uninterested, just repeated a well used phrase "it's free speech, sir".