This might prevent them from getting to assets held in other LLC's.

(years of clogged gutters lead to foundation problems, rot, moisture intrusion and termites)  Is the yard graded away from the house?

They can't prevent that from happening. 

On a side note, I would strongly encourage better screening process to prevent this in the future. 

Let them carry the cost of having an attorney on retainer, since the liability falls on them to prevent any lawsuits from occurring in your rental.

I have 4 properties, does putting them in an LLC and having Children as members in the LLC prevent them paying inheritance taxes since properties are a business and children are members in the business.

Generally speaking, the amount of equity doesn't prevent you from turning it into a rental.

Your W-2 job prevents you from owning or financing real estate?

Every property (especially cash flowing older ones) will have its own problems, repairs, turnover, management fees, leasing fees, crappy tenants that do crappy things, a thunderstorm out of the blue that causes some damage , a clogged sewer drain, a tax reassessment, a furnace that needs replacing, a new roof...these will happen and they all cost money to solve.  

Not your business.In general, California State law prevents landlords from prohibiting or restricting a provider's child care operations.