I'm a local real estate broker, investor, and manager (100+ rentals, mostly Airbnb/STR and multifamily).House hacking is a tried-and-true method and in Sacramento you can produce some meaningful income while enjoying the appreciation and tax benefits of owning real estate.

Is it tax smart? 

Additional escrow may be added for security for the seller.

Will you act as KP in my deals, offering your balance sheet and liquidity to help me secure a deal?

The houses would be looking at I'd imagine would be about 7 to 800 k taxes would be about 4K hire a year.

At a high LTV your leverage will be magnified.If your cash flow really is break even (I have my doubts) then with the magnification resulting from leverage, you could produce a fairly good return (ROI from leveraged appreciation, equity pay down, tax benefits).Good luck

Here’s the situation:Purchase Price: $540,000Down Payment: 20%Mortgage Rate: 7.125% (30-year fixed)Monthly Expenses (Mortgage, HOA, Taxes, Insurance): $3,706Realistic Max Rent: $3,000As you can see, I’m currently short $706/month even with max rent.

What about the utilities, property taxes, maintenance and repairs, capex, etc. are any of those optional for you?

Do you have a current need for that cash flow generated from the tax savings?

We have sold (tax free), kept as long term and/or short term rentals as well.