HUD regulations have a "Keating Memo" that addresses this issues. 

@Renard MillerIn today's environment, personal touching is frowned upon. ;)What @Alan Rohrer hinted at is the fact that most of us real estate accountants work remotely and nationwide.

Partnerships have the inherent flexibility to accommodate tax allocation schemes to accomplish just about any economic arrangement you seek, as long as a given scheme can satisfy either the substantial economic effect or partners interest in the partnership provisions of the tax regulations.

-Government regulations aren't as toxic as they were in the early 2000's regarding housing.

You have to do your part on maintaining a safe environment and you should be safe. 

So I'm thinking somewhere in between SF and Silicon Valley proper (outskirts of SF, maybe just 20 minutes away, cheaper, and less regulations).

I just finished reading "Managing Rental Properties" and there was a lot mentioned that should be included in the lease such as guest policy, subletting, pet, smoking, late fees, landlord access, attorney/collection fees, rules/regulations, lawn care in more. 

If they sign a form as a guarantor and the tenant defaults you can then take the guarantor directly to Small claims court bypassing the landlord tenant regulations.

I had to explain it to them THREE times with links to IRS regulations and a decision matrix THREE times, even circling the relevant sentences and paragraphs before they finally realized I was right.

.§ 1-2 The Property Manager shall cooperate with the governmental agency charged with regulating the practices of Property Managers.§ 1-3 The Property Manager shall comply with all relevant local and state ordinances regarding real estate law, licensing, insurance, and banking.§ 1-4 The Property Manager shall comply with all federal and state antitrust laws and shall follow the NARPM® Antitrust Policy and any related procedures.§ 1-5 The Property Manager shall not reveal confidential information of Clients, Tenants or others except as required in the course of performing his or her duties or as otherwise required by law.