The next item to address is the Dwelling Protection.  

How to Protect you and your investors And MUCH MORE!

I have a business partner that I feel obligated to protect even though I know that I am marrying the right woman.

I will make sure i learn the tenant laws in order to protect myself. 

I got a standard CA homeowner's policy that is $126/mo with a $1,500 deductible.My Dad brought up that since I have tenants, I may need landlord's insurance that would protect me further.

Unless you have a tremendous amount of assets you're needing to protect, you're going to be wasting time and money setting up a LLC or similar. 

Also, the crisis was so severe, your Lines would have been automatically closed and you would have no access to that Line anymore.So I moved the money into the Stock Market / Bond.For the inevitable crash, I placed some in US Bonds and some in safe stocks with PUTs (hedges against a down fall) in place, protecting the money taken out from the lines.To make a long story short, I was in very good shape to pick up a new property because I had the cash available while a lot of investors did not.I could only have done that by utilizing the Stock Market.An Investment Vehicle with only Real Estate is hard to steer.

They will provide healthy insights into management concerns as well how to protect yourself best.

While in the process, I was advised to title it under an LLC (asset protection).

These folks you need to talk to - let them know when the rent is due and when it is late and review the terms of their lease.When leases expire you may want to use your own lease with clauses that will protect you.You should talk to your inherited tenants and do an inspection of their unit.