I'd view this as a responsibility to the other tenants in my property, and I'd probably, after this event, be willing to allow the other tenant to vacate as well if they asked. 

Same wall has an exterior defect that allows water to intrude through stucco from below due to no weep screet and soaks the base wood frame.

So 70% of $220k was my max allowable offer.

Its not an easy bizz for sure and there of course are a lot of ups and downs.. .but all in all it does allow someone like me to be self employed my entire life..

If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.DSCR lenders generally let you vest either individually or as an LLC.

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

The zoning is RS3, so we'd have to wait til ADUs are allowed city-wide + dig down to meet the ceiling height requirement if we want to make it a third legal unit which is not something that financially makes sense right now.  

I did a lot of research on the forums and talking with my team about this as I'm in an UST area as well.

After experiencing different types of inspections with all kinds of properties from custom builds to existing, it all depends on your end goal , I highly suggest you reach out to a team, really strong team such as @Jorge Vazquez.

I think you will need to participate in the meetings yourself to determine if they are worthwhile for you.Go to BUILD YOUR TEAM at the top of your screen and you can search for other MEMBERS or LOCAL MEETUPS.