The supply lines are at floor level under the cabinet & I've used Jedd's idea of loosely skirting with good air flow in front of the back of the box with pond liner. 

Answering those questions is the best way for an agent to loose his license, pay hefty fees and even go to jail.

The back splash will go up all the way to the cabinet and also extend into the window area, paint bottom cabinets white, install new hinges, knobs and handle, remove old excess wiring, remove the ceiling fan and install track lighting, install can lighting over the kitchen sink. add new kitchen sink and pull out faucet.6

Neither being a smoker or having excessive tattoos qualifies one as a protected class under Federal law so it's not discriminatory to reject him for either of those reasons. 

You could loose everything.

Then go to the bank and get a term note for as much as you can against all three properties and use the excess cash to buy another property or two.

I interpret that to mean that, since Borrower's obligation is limited to excess funds, and there will be no excess funds, then Borrower's obligation is limited to zero, and the second mortgage is dead.What am I missing?

I think $2,800 a month for rent is excessive, specially when that could be a mortgage on a property in Los Angeles.

Rental income is great but would be loosing the cold hard cash...

I think in San Jose you loose the rent control in perpetuity for that space, which if it has it will devalue the home, often substantially.