This post belongs under the Rental Property Management Forum since it is definitely 'on topic.'  

But I would definitely continue to look and see if you can get something better.

Looks like skip tracing is legal in CA, but has more restrictions than here in the US. 

I’ll definitely be reaching out to brokerages around me.

I would definitely recommend reviewing this with your CPA to get a good idea of any tax implications outside of 1031 exchange know how. 

It's important to comply with all legal requirements and stay updated on any changes.Remember, it's always a good idea to consult with a professional, such as a real estate attorney or property management company, to ensure you're taking all necessary steps and complying with local regulations.

…on the other hand, flipping, BRRR'ing, wholesaling, and out-of-state investing are more like double black diamonds—they require a lot of experience, and a single mistake could have dire consequences.The fact of the matter is: real estate is a high-stakes endeavor, and the more advanced strategies (like BRRR'ing, wholesaling, flipping, out of state investing, etc.) can easily bankrupt a beginner when they're executed poorly.Although HH’ing is a strategy that's good for beginners, it’s not just for beginners—there are plenty of very experienced RE investors worth many millions who continue to HH, because it's such a powerful strategy.Now, having said all that, house hacking is not necessarily easy, and it’s definitely not risk-free (if it were, everyone would do it!)...

The note itself can be documented close to the same as any other holdback, I would venture in saying legal council would be better resources to help draft this than a QI. 

Quote from @Kevin Sobilo:  My leases state that any monies owed are payable "as rent" so that if they do not pay that damage bill I can simply choose to evict them for "unpaid rent" which is simple and cookie cutter.FYI this is not legal in Colorado. https://leg.colorado.gov/bills/hb23-1095 prohibits "A provision that characterizes any amount or fee set forth in the rental agreement, with the sole exception of the set monthly payment for occupancy of the premises, as "rent" for which all remedies to collect rent, including eviction, are available"As for the $600 faucet... it sounds like you just called up a random plumber and told them to install a faucet.

It looks like Ohio has some very strong movement and we will definitely have it as a top spot to explore.