You risk a market continuing to be hot for two years and locking them in VS being able to increase next year but you also protect your downside if the market takes a dump and rates go low you are at a good rate for 2 years. 

California is a tenant-friendly state as it is, with COVID moratorium protections, there are even more complications and problems that arise with eviction. 

We do it for our clients all the time.But an OOS investor should be careful as there are so many ways they can get taken advantage of:1) Buying the wrong property, wrong location, etc2) Being overcharged because there's no transparency on actual costs and budget3) Shoddy work because no pics/video are supplied4) Crappy tenants are placed that destroy the rennovationsNone of the above are discovered until an owner goes to refinance the property or sell it.What should an investor do to protect themselves?

One provides asset protection and the other provides only some anonymity. 

Geez...that's like asking what do I need to know about construction, financing, valuation, municipal codes and permitting, Landlord/Tenant Laws, liability protection, marketing, tenant screening/lease contracts, running a business, market demographics/inventory/year-over-year appreciation/rent pricing - and a whole lot more.  

If you fail to completely vacate the Premises when required, you will be liable for all resulting losses suffered by us including but not limited to, future resident losses, lost Rent, legal costs and other expenses.

Having said that though, it's always wise to have some protection.

What is confusing to me is that most books advise on protecting your asset under an LLC.

Should I give him the notice to make sure I'm protected on my end? 

An LLC does not protect members from court judgements.