If so, have you ever done a buy and hold partnership deal that includes one partner invests and the other lives in as principal residence for 2+years during renovation and manages property until sale? 

You did not say where you live?

The only problem is I live 4 hours away and the home might need a-lot of capital to fix up and I don't know if the juice will be worth the squeeze. 

They want to confirm nobody is living in the basement.

The Class A home is the one I lived in and now rented out - great tenant, very low crime, excellent school district.

As a new real estate investor living in the crazy expensive Bay Area rental market, I'm exploring clever ways to get into investing.

Since you're planning on living in one of the units, you might consider an owner-occupied loan.

You can raise rents but there will be different lengths of time that you have to provide notice depending on how long the tenant has been living there.

I want to live in the studio and rent the house.  

If she's lived there just one year and the lease has no language that it will renew/turn into a month to month rental agreement after the initial term/ETC. you are fine with a 30 day notice.