Throughout my career as a real estate investor and CEO, I have learned valuable lessons on maximizing the potential of each unit in a property.

As mentioned 90 day limit, which makes it difficult, and wuite pricy to get the STR certificate from the city. 

Nathan I think this is true if your just talking about rental props for landlording.. the last 2 to 3 years have been the best years of my career.. building new builds and Loaning our funds.

Investing in a single-family home in LA and expecting a good cash-on-cash return will be very difficult. 

Let's assume that the neighborhood is a C class and the median income of the city is greater than 3X of the market rent.Here are some of the considerations I've come up with so far:- Units are in need of renovation and capex is too high or not available- Unit quality is not the same as market - Seller is worried about losing tenants due to increase- Vacancy rates are high or filling units have been difficult- Rent increase would take multiple increases over multiple lease periods to get to market rate if seller is trying to retain the same tenant- Seller inherited property and just want to liquidate- Seller needs to liquidate quickly (financial burden, sickness, quick exit from land-lording)It seems like I might be missing a warning sign about a deal if they are selling with current rents that are under market; but again, this seems to be most of the properties I've underwritten.And in the same vein, what should I be worried about when purchasing a deal with under market rent with the intention of raising them after purchase. 

This was a clean foreclosure property, which is usually difficult to find.

In the metro-G.R. area where this is, I am, it is difficult to purchase anything that cash flows to rent otherwise, and it is a very hot market yet. 

I’ve had a similar situation before and had a difficult time finding people interested in partnering.

The plan is to use the heloc to purchase additional properties, and basically brrrr and pay back the balance - then repeat.What I didn't realize is how difficult it is to find a business heloc.  

By prioritizing fundamentals over chasing ROI benchmarks, he’s now sitting on an asset that’s appreciated 30% and maintained strong cash flow.Personally, I once miscalculated reserves on a triplex I bought early in my career.