Don't make it complicated.

Thanks to the relatively new statewide AB1482 law in California, if they've lived there for over 12 months, you can't terminate their tenancy (even if they're month-to-month tenants) unless: 1) The property qualifies for an exemption, or2) You have "just cause" You can read this for some basic info on this new law: https://cal-rha.org/legislative/ab-1482/However, given that this is a very complicated law and it's affecting every unit of your property, combined with the fact that it doesn't seem like your property manager is much help, I'd suggest you seek out a local/experienced landlord-tenant attorney for their guidance on the matter.Good luck and hope this works out for you.

@Adam Tafel - it's a little complicated.

It is a well developed and complicated market. 

Maybe this varies by county/city too.If anyone has done this, are there any major complications with rehabbing the house so there are two kitchens that connect to the same gas, etc?

If the changes are structural (involves the structural walls, foundation, or similar) the underwriting is more complicated than if it is just remodel the kitchen, paint, etc.The Liability covers your exposure as the owner of the property. 

I would talk to a lender to clarify what to expect for your situation.However - analyzing the overall business plan, equity structure, return metrics...etc for a syndication can get very complicated.

We can do more complicated metering and offered that, but the tenants were fine with the way we have it set up.

Or, can no longer accept digital applications via this service which complicates operations and makes it that much harder to go from the application to automatic rent collection.

Multifamily is still probably the best bang for the buck in terms of risk in the long term, but the eviction moratorium complicate things a little in the short term.