That law sounds pretty specific. 

Then I usually get a letter from the Sewer provider citing the Indiana law which says I'm responsible for Sewer if the tenant fails to pay. 

Petrillo RI law is you have to replace with a septic.

Most LLCs are set up for liability protection or similar non-tax reasons, and especially in CA, the penalties for "non authorized" practice of law are steep that a lot of CPAs will not even form the LLC for their clients. 

The best thing you can do to protect yourself is to follow the law and treat people honestly and fairly. 

Drivable to the Bay Area, much lower property taxes (that DON'T reassess on the sale), much friendlier tenant/landlord laws, strong population and job growth, strong appreciation, and also anchored by the tourism and wealth of Lake Tahoe. 

The laws are clear in every state, you don't pay rent, get out.

All laws should be upheld in the selling of these properties.

I also met some great folks out of Portland at the BP Conference in Mexico this month.My father-in-law lives near Ellsworth and owns some short-term rentals there.

Quote from @Alex Zweydoff: For those interested, i recently updated the blog on our website with new relevant information regarding the law.