I  Gave the tenant notice - gave credit of $150 towards rent...

Common options are cash, personal check, money order, online payment, etc.

So the media and the public didn't even notice for many months that the market had changed.

Also if you are coliving with your tenant, make sure you clearly write out what the responsibility of the tenants are (who takes care of the yard, common areas, utilities, etc.)

You'll also want to ensure you have a good property manager to look after the upkeep of the property if you are not there to notice anything deteriorating or which may need attention.Creating an LLC in California would cost you a minimum tax of $800 every year. 

Might just need a little work on the outside and there is potential for adding central air as it is currently set up with window units (very common in the midwest area I am currently looking). 

His lease-option idea is a common way to run Single Family properties and many times people will not take the option. 

Oh Just noticed "no interior inspections".

Usually, you'll have to send a certified notice to the tenant before you can file.

I would say a year is somewhat common, but that is not much time.