I already work in MA, so I'm already filing two state tax returns.   

Gift funds are documented and scrutinized.You can use a loan for the full amount of down payment and closing costs if it is secured by collateral. 

When syndicating a deal, you've now turned it in to security.

Then, rather than going to a bank you would sign a promissory note and have that filed as a lien on the property.

I would personally pick option C.Place tenant myself and self manage for the following reasons:I don't like giving away 10% of my rents.No one is going to care about my property more than me.I have systems in place that allow my to self manage with minimal time.I have a great support staff that I can text when there is a repair that is needed.I rarely take calls from tenants and tell them to text me to keep from getting caught up in their drama.If they don't pay rent on time and it is a repetitive problem I file an eviction to train them they must pay on time or go somewhere else.They can pay rent with Zelle, paypal or deposit rent into my bank account (most deposit into my account)It is their job to pay rent on time I do not collect or chase rent it comes to me.My rental portfolio is very passive with little interaction required by me.

My guess is that your partner did not file CA state form for the LLC and did not pay $800 minimal annual tax.

I also want actual names on the agreement of ppl who will live there and will be responsible for the rental.I know they can tell me to kick rocks and not give me ish' but they seem really motivated to sell so what else can I ask for to vet the current tenants, get more information on them or something to make this a little more secure for me?

This way, you can have a small equity security blanket if the market shifts, and/or sell the property for a nice gain if the market continues to appreciate. 

They will also need an executed lease - meaning a lease that is signed by all parties and the security deposit in your account. 

If anything, you'll get an additional tax filing and a reduction of your lifetime exemption.