Legally and logically you can and should send her a notice of default and if she continues to default keep charging (out of the security deposit if that is written in the lease) but eventually this may lead to eviction. 

Trying to think of the most logical plan for long term.1.

The most logical conclusion is they are selling drugs.

@Chris Ellis Thanks for your reply..On the face of it, it sounds logical and I am with you on more risk to Private lenders vs Banks.

By all means, community or @Justin Campbell straighten me out where I've gone off course.If my logic is good anywhere, let me know that too so I can stick my tongue out at my wife when she's not looking.Justin, best of luck man, I don't know California at all.

For example:1) Appraised value (What the banks feel comfortable lending on based on recent sales)2) Market value (What buyers are willing to pay for the property)3) Assessed value (What the municipality thinks it's worth for tax reasons)4) Zestimate (What Zillow thinks it's worth based on an algorithm they think is right)5) Larry the contractors value (70 Percent of market value minus repairs)6) AVM (Core logics number based on comparable sales and an algorithm they think is right)7) BPO (What a local broker feels they can get for the property...

When you can make that case with solid reasoning, logic, facts and appropriate financial arguments, then, and only then, you have earned the right to skip getting a degree.

The logic of multifamily over single family makes a lot more sense to me personally.

My logic is that if it was good enough to be in someone’s primary residence until they can't reside there any more, it's good enough for a refinery contractor to sleep on. 

They love the idea of a paintball field in the location and said that some sort of owner financing taking into account a percentage of business profits seemed logical.