He makes sure we maximize all deductions and have no issues.

@Eric Huntermark There are two big issues to be a real estate investor.

Insurance is a lot trickier and somewhat state specific.  

Are you exploring a conventional loan or a loan specifically designed for rentals?

By house hacking, you're immediately positioned as a landlord, which will adequately pressure you to learn how to structure your leases, screen applications, collect rental payments, resolve the nuances of managing tenants and addressing property issues, etc.

It is hard to pin down specifically, but that seems to have been a factor in a few of the ARV-Appraisals that I've seen and has impacted the refinancing process.Otherwise, it has been a great market for my clients, great cash flows and repeatability which has really helped as they have scaled.

Quote from @William Dorrough: I currently either purchase and value add large scale multifamily properties or develop, and build ground up my issue with scaling is we have done this without brining in investors i have a great deal flow with a good track record im really looking to do more i have the capacity but have the need for more capital in one way or another  Scaling without investors can be tough, especially in multifamily.

I've been investing in Albuquerque for 10 years, and I can give you more advice if you are more specific about your goals.Jjens

I called a lawyer but they didn't even know as it was too specific of a situation.Want to avoid putting myself in a bad spot and make sure I handle ESAs well in the future.

As far as any specific requirement on California I would need to do some research for that.