Saying other separate LLC can't be touched is not really true, your other LLCs are your personal property, like stock in GM, claims may the be attached for revenue from operations or a forced sale to cover debts arising from your suit. 

If the place needs any rehab or any major issues arises, your negative very quickly.F!

To your question about income -- given the constraints that can arise in a group tenant situation - I would think that each individual tenant would need to meet the 3X rent rule -- that way, if there were say - 3 tenants -- if two had to move to another city -- that in the worst case scenario the last person standing would be able to afford the place on their own.  

Whenever things come up or problems arise,  it's easy to get down on yourself and take the blame, whether the issue was within your control or not. with that said...what are some indicators or measures that you use to track performance against?

So, from a pure business perspective it could make sense to work things out with a certain tenant should this situation arise. 

My why is all about “cognitive consonance,” it’s defines as state of harmony and internal consistency arising from compatibility among a person's attitudes, behavior, beliefs, and/or knowledge.

A great way to avoid potential conflict when this arises would be to set expectations upfront.Include this in a discussion: "in the situation where the heat goes out, hot water heater busts, etc, we will be given 48 hours to rectify said issue; you will be refunded rent for any time past 48 hours that the issue persists"Or something like that...

I oftentimes realize I would need to ask so well below listing price that it would be unrealistic for a seller to accept such a low offer.But certainly, Dan, in your experience investing in San Diego, I can imagine it's been equally as challenging to find a viable deal, if not more challenging, than in the Fresno area.Perhaps, in the coming months, with the current state of the economy, a situation may arise that I find a seller who truly would be willing to accept an offer well below listing price?

Should I let the lease expire, let them live on a month to month as a trial period and if problems with him arise, look for a new tenant?

The issue primarily arises I think from the fact that there is no true standard for service animals as regulated by a government agency.