Am i making the right choice, or am i missing something? 

That's your choice.

., org for community garden)3. selling the land (what are ideas for doing this... land doesn't seem to be first choice for what realtors want to sell)I live in the Bay Area so have to keep this in mind as I explore options.Thanks!!!

I have a mortgage to pay; I could absorb the hit and pay the mortgage without rent for a few months if I have to, but it's not my first choice.

Everyone here is an adult and can make their own choices.

If you ran your numbers for your property and you still cash flow(after mortgage,loan payment and reserves) would it be a wise choice to do so?

I think a lot of people living in expensive markets on the west coast invest in OOS not by choice, but by necessity and that could be dangerous. the biggest problem I see with out of state is lack of control of the situation if the issues ever come up.

Together their income is sufficient but separate it isn't.

It is their choice to keep the existing leases, written or verbal, and the only thing you can change is the rent.

Get a house you can afford (Or maybe even less than that would be sufficient) and sell the rental for a better one.