😀But I have to get to it since the right choice here doesn't seem to be that obvious. 

Would love to hear from other pros.For California specifically, it’s safest and most cost effective to allow a passive trust to own all real property in California.

Well if its from a bank you do not have any choice.

I'd suggest narrowing your choices down based on your long-term goals and what excites you most (sounds like hands on flipping).

It’s completely normal to feel a bit of analysis paralysis, especially when you’re in a position to make a move.The choice between a short-term rental (like Airbnb), long-term rentals, or a duplex comes down to your personal preferences and lifestyle.

There are many reasons why a cash out refinance is the better choice but there are a couple of reasons a Heloc can be used.

Same time, I can let her stay til the family find new home but afraid if she keep complain after lease is terminated.As I have another project, I am ok if they live quietly but what will be the choice if the lease is over and tenant still live there?

Without a diligent and responsive professional, touring, offering and closing on a prime investment property of choice is less likely.

I need some advice on which choice makes the most sense starting off?

So, you are left with the choice to proceed as is, negotiate a lower cost, get a concession, or walk away.I would get a quote and request a concession if they aren't interested in fixing it.