find somewhere that is growing in population and employment, then you can get in the way of appreciation. 

I did all my other due diligence like asking for paystubs, W2s, Tax returns, Employment verification, bank statements etc etc and did not see any red flags overall.

I would look into self directed 401(k) options (your employer may not allow that) or the borrowing from the 401(k) to see if you can have your cake and eat it too! 

With mid-term rentals if your average guest stay is 30 days or less but you provide substantial personal services (daily maid service, meals, shuttles etc, more like a hotel) then it would be non-passive...but you'd also pay self employment tax on any income as well. 

CA's definition of "doing business" for foreign entities includes maintaining a physical office, employing staff, or meeting the economic nexus, also, broadly asserted that any LLC with members, managers or agents conducting activities in CA on behalf of the LLC, would trigger registration requirements.

Learn more about checkbook IRA here: https://www.biggerpockets.com/member-blogs/2810/blog_posts/2...If you’re self employed with no full time employees the solo 401K is in many ways the “Ultimate Retirement Plan”Learn more about solo 401K here: https://www.biggerpockets.com/member-blogs/2810/21298-solo-4...Be aware of prohibited transactions and disqualified parties. 

Now the post test reveals I have pvc sewer line leaks under the concrete foundation. plumber has found multiple breaks in the line which need to be repaired and has provided an estimate for tunneling under the house and replacing entire 45ft main line!

Same for 2-years of job/income stability.Tenant Default: 10-20% probability of eviction or early lease termination.Section 8: Class C rents usually meet program requirements, proper screening still recommended.Vacancies: 10-20%, depending on market conditions and tenant screening.Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.Class D Properties:Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months.

If it were me I would get them all under agreement but spread out the closing.

He has since restored his credit (740) and has stable employment.