Unfortunately the vast majority of landlords do not screen very well and rarely understand human nature.

Usually in a regular contract the seller covers a basic title policy for the buyer but special endorsements added to the policy are the expense of the buyer.Anything is pretty much negotiable.

I’ve considered different things such as covering renovation costs for some of the profits upon sale, seller financing, asking them to rent the property out and I will manage it for a fee, or just simply list and sell.

It's just a matter of knowing your preferences and working with dependable agent/PM/contractors to cover you. 

If they occur then you are covered.  

I sell Property #1 for 40K down as 'boot' to cover the recapture tax (40K - taxes + 25K) from the buyer and he/she also brings a bank loan for 180K and I carry 180K of seller financing over 20 years. 

As far as tenants; I don’t know California’s laws but basically you advertise, screen, get a landlord type of insurance policy, sign lease, set expectations, take care of tenants and home but don’t confuse that with being soft on due dates etc.

Of course 10k would not nearly cover all of them, which we would back out if that were the case. 

I was thinking that some of the monthly gross would be held in the LLC's name to cover repairs and other expenses (please tell me if this isn't normal).

Francis James Gillies “if you can't wholesale after this i've got nothing for you “by Todd Fleming cover some points on direct mail.