Like you're saying, it is difficult to cash-flow in expensive markets, but the way I look at house-hacking is a way to reduce your living expenses.

. - We can buy directly from MSI and their prices are very inexpensive, since you are buying it wholesale. 

Let's say a person had an income of 1,000,000 per month and $500,000 in expenses which would make their DTI 50%. 

Is there a strategy for buying something that someone else has already improved or is inexpensive (or off-market) and starting to do a short-term rental right away?    

Hi Maggie,  there are great ways to make money in expensive ca markets.  

Remember, you can put as little as 5% down on a house, duplex, triplex, or fourplex with a conventional loan.If I were you, I'd speak with a lender about your financial situation to understand what your budget actually is, then look for an inexpensive duplex.

For my personal home, I went cheap and bought nice but inexpensive Costco tub that runs on 110v, takes 1-2 days to come up to temp depending on time of year, and I had no perspective on the speed of 220v units. 

I don't hear many people mention this about these inexpensive Midwest markets but the property tax increases can really reduce your cash flow.

I wouldn't expect to cash flow off the first property but expect a significant decrease in expenses. 

We used to prefer AB&B because they are the most popular and inexpensive but they are also the most guest friendly.