Like Sean mentioned, VA loans have strict property requirements.

Permitting will be huge in ensuring you are compliant with all building code requirements, especially if you ever plan to resell.

I have similar goals to you of eventually having freedom from a strict work requirement and having the ability/flexibility to do things on my own schedule.

Is there a certain Smart keypad or lockbox I should be using so as to change the code for each guests?

My rental property PM shared the code with a 3rd party local vendor that I am going to hire.I thought someone from my PM company will open door for the contractor but they simply shared the code.

Use a color coded sticker system to help tell which room gets which box (red stickers for your room, blue for boys, yellow for kitchen, you get the idea).

I am looking for someone who is well familiar with not just the coding and regulations in zipcode 90046 but can provide a design that will require the least number of permits and quick turn around time.   

After a couple months of him researching city codes and license requirements we were a go.

In Texas, hot water is something the LL must provide under strict statutes.To your question "who pays", if it seriously looks like it was damaged on move-out, it should come out of the last tenant's security deposit. 

Part of my luck I guess has been buying in strong school districts and mostly B type property, I feel I would have gotten burned more if it was C type.Agree with you on approach, I have been strict with application requirements and have a high bar on credit score, etc.