Question: If you were to purchase a STR to close in November and the seller negotiated that the buyer must honor existing rentals with the current rental company/property management until January of 2025…. 1- does this negate the short-term rental loophole for the 2024 if you aren’t managing it yourself for these months in 2024?

I’m not super keen on having long-term tenants in a single-family home in California, but I’m open to advice on that.The house is in decent shape but could use new flooring, a paint job, and potentially heating and/or central AC, as well as blocking/taking out the existing fireplaces (don't love the idea of fireplaces in a rental). 

So many more people on here more qualified to answer this than myself, but my thoughts....Have to focus on areas with existing infrastructure. 

Long-term rentals have existed forever and are a proven investment vehicle.

The sub 70% projects are very sought after and usually do not exist on the MLS. 

But that set aside, my point is not to define shortage (it is what it is, lack of supply), rather to explain WHY it exists.

I just started my due diligence phase, but the first thing I need to do is better understand the financial feasibility for the project, and how the return might compare to other investments we have undertaken in the past, which have been mostly acquiring existing buildings and renovating, not new construction.

Or you could use the equity in your existing property to fund a down payment.However, becoming more experienced in real estate investing is best before using leveraging to maximize gains.Alternative Options (Less Investment Required)Suppose you want to start investing in real estate but don’t have enough cash.

I took a 2 bed 1 bath house and converted it into a 4 bed 2 bath within the existing floor plan (2200).

Seems a lot can go wrong with this and I wanted to speak with existing investors and see what has gone wrong with this in the past and how have then fixed it.