@Val Jaz I agree with everyone on the approach of just issuing the notice to quit based on non-payment of rent, and do not interact with these people or get involved in any more drama.

What would be the best way for all involved to go about this?

Then there are lenders who do loans for REI and they understand the risks involved with rentals.

I'm a new investor looking to connect with people involved with all rungs of the ladder from finding deals, to managing, to agents, to flippers, and renters.

But, I can tell you that I consistently have clients and potential clients come to me with unfortunate situations involving lease agreements (sometimes found on the Internet) that are simply not California compliant or unenforceable.

I rarely drive down there but when it comes time for a new tenant I want to meet them and be involved.

There is more work involved in Section 8 though. 

There seems to be a lot of costs involved with setting up multiple entities and hiring an attorney to set them all up correctly and a CPA to assist with my books and write offs.

Google "old ammunition" because anything with explosives in it can sometimes become unstable with age.I've seen a couple of news reports over the years where people found old sticks of dynamite in their home (put there before people understood the risks involved).

At the end of it all, we both came out ahead, his task was done faster, and I got a bunch of new insight to real estate investing.