Every time I find a good deal - it ends up being not so good once I start analyzing the numbers and the reality of the home or environment lol.

Tenant 2 on the other side has supposedly been living in her unit for 20 years, and she currently has a roommate.

I would screen her first so you know who will be living there but assuming she's ok, would just add her as an occupant as opposed to a responsible party to the lease.

There seems to be so much going on there and the environment is similar to San Diego (similar types of houses, wonderful Hispanic influences).

Most of the area it’s only allowed WHILE you are living in the unit as your primary home.

I also never looked at it as a way of quitting my job; to me, I think it would be more productive to just find a more profitable way to make a living that you enjoyed. 

Also, the state of formation is likely where internal disputes would be brought among LLC members, so if you and a partner and/or spouse live in CA, you probably want to arbitrate in CA if the two of you had a disagreement.

We are planning to live in the owner's unit and tenants above have lease that is expiring mid 2024.

I also grew up in Cupertino and lived in Palo Alto Napa valley prior to Oregon..

I live in a town of 128k only, in Abilene, TX.