Forced appreciation allows me to build equity from the beginning of the investment, so if I need to firesale for an unforeseeable reason, I will not be underwater.

If it's over a year, you'll  be subject to long term capital gains at rates up to 20%.

You are using the projected rental income from the subject property.

Unlike long-term rentals, STRs can be treated as non-passive, allowing depreciation deductions, including bonus depreciation (40% in 2025) on eligible assets.For tiny homes, tax classification matters:If mobile, it is considered personal property, allowing 100% depreciation under §179, subject to income limits.

In analysis of subject propert the cap rate for 103 property in this area is 5.4%.

While there's no strict requirement to match the original mortgage terms, reinvesting the full proceeds without financing or using leverage to enhance returns is key.If you don't reinvest the full amount, any shortfall ("boot") will be subject to capital gains tax, and depreciation recapture may apply.This post does not create a CPA-Client relationship.

-We have 3 years, or until we buy another house, for one of them to be considered a 'rental property' and subject to those capital gains.

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.

However, these fees are subject to variation as they are determined by the banking entity providing the service.A Bank Trust not only transforms your dream of owning property in Mexico into reality but also offers unparalleled flexibility.

Neighborhoods to invest in is a more subjective topic as that is often dependent on the type of investment you're interested in, your price point and even the type of tenants, if that's the route your going,  that you are trying to attract.