I've realized that despite my desire to protect/provide the best environment for my downstairs tenant, there is so much I can do.

Finding a place like this not far from the city is highly desirable for a growing number of people it seems, and is not as easy to come by anymore. 

Partly because the previous rents were a little below market; but also because the units are that much more desirable with new materials.

.#5 - If I sell, MTM is more desirable for a buyer or, I can make the property vacant easily.I would be open to signing a long-term lease AFTER the tenant proves to me they are worthy of one!!!

I find most of the MFHs within my budget range are in the sketchy part the town and I am finding it not so desirable to house-hack with MFH because of this reason. 

I just have no desire to be an agent.

Similar to what some of the other contributors said previously, most of the 2/3/4-plexes that I've found in North Orange county are located in not-so-desirable areas. 

This is the case in a lot of areas which also makes existing communities so desirable.

All I have at this point is an engineering intuition, common sense, a desire to learn, and time...after finals May 23rd.

The experience you'll gain on the first deal - and the desire to do it over and better again - will likely far outweigh any heartache or stress from the process.