Should I consider an “implicit” early lease termination?

Since the real estate is part of the transaction you can't do the 1031 exchange.You could consider an installment sale, to potentially spread the tax liability over several years.

I this chaotic environment, I would avoid this option.I wound not consider an unleveraged purchase in this environment.  

Since the property is in his personal name, the best first step is to get a solid landlord insurance policy and consider an umbrella insurance policy for extra liability protection.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

Maybe consider an outdoor spa pool as an amenity.

The best choice depends on your long-term goals: if you're focused on learning and building locally, go with the house hack; if you're comfortable building a team remotely and want better returns, consider an out-of-state rental.

As far as your PM, they may be fine, but talk with them and get a general feeling for them to see if you may want to consider an alternative PM.

For house flipping, consider an LLC taxed as an S-Corp to reduce self-employment taxes by taking a reasonable salary and the rest as distributions.

Beofre I consider an unsecured loan, I would love to hear if anyone on the site has any stories good or bad to share.