I have strong credit (760) though my wife has a limited credit history as she is now immigrating to the country.  

Consumer protection laws, time consuming and expensive court procedures, and so on have forced some hard money lenders to become even harsher when applying for a loan.

I am currently flipping homes and am current searching for my next project at the court house steps.

Fundamentally, to the extent of my knowledge, the Bay will still thrive and grow for a long time to come.But the question of: "Is the cost of living in the Bay so high compared to the rest of the country (maybe historically, or just the affordability index) that it is now a very attractive option for a ton of people to start moving elsewhere?  

I would treat the two situations separately and immediately.1. floor 2 - serve 14 days notice for non payment as it takes a month's time at least to complete the process of them either moving out or court.2. floor 3 - if you can verify the pit bulls, then serve them 14 day notice or if there is no lease for floor 3, then send them a 30 day notice that you are not renewing the lease. 

@Jordan IngramWelcome to Bigger Pockets and also the best state in the country ;)  My wife and I live in Oxnard and we just completed our first flip. 

Unfortunately, they settled out of court at 70% of repair costs, still a little better than no compensation.

If it went to court, I think you would have a hard time convincing a judge otherwise.

instead of me heading down to the court house please!!!

Thank you for your services to our country, my family and I am sure all of BP appreciates what you sacrifice on daily basis for us to enjoy our freedoms in this country!