I would also find out from your friend if they have increased the rent since that tenant has been in the house. 

I looks like you are in Cali which is a notoriously tenant friendly state.

Do you want tenant-friendly or a hammer? 

@Anshuman ThakurThere are some very good advantages to investing in Nevada, low property taxes, no income tax, and landlord friendly.

Landlord friendly states are going to be your best friend since CA isn't the best at looking out for landlords. 

John,  I’ve had friends move out of the Cahokia market because they couldn’t find good property management.

I also hope airbnb does not continue to get less host friendly.  

My wife briefly help a friend manage their monthly short term rental in San Francisco while they were traveling and have a few friends that do it.Monthly rentals seem to book pretty well, but not at a significant premium to long term term rentals. 

With fully paid-off properties and significant equity, your options are wide open.I had a friend in Connecticut who ended up investing in Phoenix and he was in a situation much like yours - an inherited property and equity to work with.

NV is a landlord friendly state with no state income tax and the 4th lowest property taxes in the US.