If the two that want to stay, but need more time have paid their rent, I don't see how you can "kick them out" without adequate notice; in writing.I'm assuming the lease renews month to month. 

If you aren't getting paid and/or have served proper notice, get the eviction filed asap.

*I'm in the process of getting my loan pre-approval, and I will have a better idea of what I can afford once that is complete.Would you recommend forgoing the FHA loan and purchasing an affordable property out of California, or try to search for an affordable home in California using FHA loan?

-set up a good system with some controls in place to ensure your invoices approved/checks cut and paid is being monitored.

You should be able to confirm what the owner paid for it by checking with the tax office or courthouse. 

My husband would probably go for the last option as this house is paid off in 9 years and would could probably make more off of a sell. 

As in, once you have paid yourself back, can you (and if so when can you) pull the money back out again?

I’d focus on well paid professionals, which will probably be the only group of people that will be able to afford the rent.

I paid outstanding bill and I had a water company come out to turn on the service. 

Hope that helps,Chris Pre