Alternatively, you can search Craigslist for some local deals too; if you are able to pickup and deliver.

Call and ask them the best course of action.A good alternative would be working with a list broker to get a list such as Owners with Low Financial Stability Scores (FSS) These are people who's financial situation changed since they bought the property.

If the water is turned off for more than one day then you'll have to offer the tenants an alternate location to stay during that period.

The other alternative would be a single family home with an additional structure - I have seen folks finish a garage to convert to a rental on their primary residence.

To be honest this seems too good to be true, and would like your input to point out if there is anything I missed or didn’t account for, am totally naïve about, or alternate scenarios I should consider.

I have a plan for the next 4 years and Im hoping you can tell me if their is some problems, a better alternative, etc.

MF is my main goal both in the traditional apartment space and some other alternative options that I think could transcend the space in certain areas.

In this case, it appears that you will be doing business in CA.Just be mindful that CA does require an $800 fee for all LLC's doing business in CA or organized in CA.You may want to consider an asset protection alternative. 

Are there alternative solutions to this situation?

Every wall alternated color (red-tan-red-tan) with trim that alternated opposite the wall (tan-red-tan-red).