If the owner lives in California and their name is on the contract, then the owner may be required to show up in court for legal matters.

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Good numbers- I will be essentially able to live for free by renting out the units and eventually cash flow when i move out2.

Do you live out of state?  

However, it does not look like the tenant on the lease is living in the property.

Seek out single-family or multifamily homes with space for conversion, extra living quarters, or rental apartments.

Fortunately I can facilitate all the improvements at cost but is it realistic to think I can draw a higher end renter that is willing to pay above market rent to live in much nicer appointed home?  

I live in Southern CA where cost of living is high as is real estate.

Once built use one home to live in and sell the other(s) to supplement the cost of the primary home?

I live in North Dallas now days but have lived all over the metroplex.