In addition to what my Broker was presenting me, I spent some time searching for properties on loopnet, reached out to the seller brokers and got the financials, which I used for analysis and comparison and "further my education".I quickly realized that my budget wasn't good enough in my targeted market to get on the really good deals.

Definitely offer seller financing, sub2 and lease options as additional scenarios. 

After building homes and very large additions in San Francisco and the surrounding Bay Area, I decided to start rehabbing and flipping homes instead.

Thanks for the additional info.

In addition to that I do monthly ledgers that list the running log of payments received to date. 

But did you wrap additional equity? 

Probably anther option would be to give her a thirty-day notice to vacate one month before her lease expires (I don't need to provide any reason in the City of San Diego as long as the tenant has lived on the premises less than two-years).I addition, I believe that this can be a problem with my property insurance if they were to ever find out that a dangerous breed lives on the premises. 

Did you pull out any additional cash over the amount of the HML?

Additional info.

You may not have as much taxes as you fear.In addition, you will also have taxes on the previously taken depreciation - which is the case even if you qualify for homestead exclusion.