Create a "fireplace house rules" addendum and have tenant sign it.

You'll want to be clear on the IRS rule for material participation if you do decided to switch to property manager. 

Also, don't forget the cardinal rule is sales: every "no" brings you closer to a "yes".

Is there any way to divide a lot under SB9 without having to live on the property for 3 years as required by the current rules (at least in Riverside, CA)?

Unfortunately it’s an SEC requirement to be accredited for an investment filed under Rule 506(c) — which this investment is.

I mean has anyone proven that something was not disclosed or done against SEC rules ? 

CA rules do not require a closet but some jurisdictiins in CA require a closet.  

I was lucky enough to find a property just a few blocks from my TK purchase that was in excellent condition, fully tenanted with two units, passed the inspection with flying colors and is grossing close to the 2% rule.

If you do it right, it’s arguably the best market to invest.Purchase: $80k-$130kRent: $1100-$1500 (no rent control in MI)1% rule: .9%-1.4% rule dealsCoc ROI: 5-12%Total ROI: 20-40%Cash flow: $50-$250/door (after all expenses and budgeting for maint, capex, vacancy)Appreciation: 3-10%+ (has been double digit for a decade)Location: C+, B-These numbers are based on the “sweet spot” in Metro Detroit.

Pete Beach has varying STR rules in different areas, and each condo HOA sets it's own stipulation on 3, 7, 14, 30+ day minimums.