Move on. 

Plus if you are getting priced out of every other deal, moving too slow for on market houses, your realtor telling you that this is a bad time to invest, etc. then you may pull the trigger on a bad deal.

He is recently divorced and has to sell his house, but he really doesn't want to move.

It is technically "move in ready" but it is a 3 bedroom house versus a duplex where we can hope for 4 beds (and 2 doors) which would mean greater rental income.

Moving forward?

Now that the rehab is complete, there's some equity in the property, and I'm moving in, I can't help but wonder if it's smart to take this time to do something on the side to pay down my mortgage faster or start educating myself on screening tenants and doing my due diligence.

Anyone have helpful tips on California tenant laws and self managing?

I accepted the 2.5 week wait because as a rookie I was worried I might not get someone else--the next day I had to turn down someone who would have moved in on our "available" date. 

Our property is a duplex with 2/2 units and he wants to move into one of the 3/2 units.

Did you tell the lender you were going to move into the property and then not move in?