However, the higher initial investment, property management complexity, and potential vacancy risks can be challenging.

The proper answer is "it depends" I don't know anything about your case.I do prefer simple over unnecessary complexity.

Quote from @Dana Yobst: Quote from @Julio Gonzalez: @Dana Yobst While it may seem like a simple concept, it's actually a very complex process that requires significant documentation as well as specific methodologies.

@Eli Jerman Owning a duplex where you live in one unit and rent out the other offers significant tax benefits but adds complexity.

Do you understand the added complexity, work involved, and costs? 

Quote from @Angus Brooks: Hey All-  I own a small apartment complex in a two entity LLC and am wondering what the tax implications are for a cash out refinance. 

I am currently selling a 16-unit apartment complex, the first one to sell since 1998 when this buyer bought this one!

On literally every corner there's a new construction project for huge apartment complexes and there's tons of inventory.

This can provide a better depreciation benefit than traditional STR real estate.If permanently affixed to land, it qualifies for real estate depreciation (27.5 years for residential properties).Considerations:Zoning laws and campground restrictions may impact legality.Self-employment tax risk arises if you provide substantial guest services.Vacation home rules apply if personal use exceeds 14 days or 10% of rental days, limiting deductions.Audit risk is high, so keep detailed records of participation, expenses, and rental operations.Given the potential tax benefits and complexities, consulting a real estate tax professional is advised to ensure compliance and maximize deductions.This post does not create a CPA-Client relationship.

Landlord-tenant regulations are a bit complex in California and getting hands on is the best way to learn before expanding into larger investments.