I used to go with your approach, but over time I switched.

So the performance here is really on me.Based on the opinions and realization I’m now leaning towards a middle of the road approach - keeping the SoCal room rental house, get that to market rates (~6% ROE) and 1031 the mountain houses.

The good news is that with the right approach, you can also achieve positive cash flow in these markets.Ultimately, success in real estate investing hinges on selecting a growing market, a desirable neighborhood, and building a strong support team.

Anyways, the appraiser used two of the properties that were within the comps report (the higher ones) and we managed to overperform our ARV target by $20k.Lesson Learned -> Later we realized that the appraiser also looked at the rental comps, and the average rent used in the income approach was $2,000...we are renting both units for $2,600 and the average rent in general for this kind of duplex in the area is $2,100 - $2,200, so we could've easily hit a higher ARV, crazy right?"

I was approached often in California to be an rmo and even though the money offered was quite good, I passed, because of the work required and the liability.

I’m definitely exploring the BRRRR strategy alongside fix-and-flips—there's a lot of potential in combining both approaches for long-term growth.

Aloha @Kaleb Ahonen - my team and I take an Off Market/Distressed Property approach in the Inland Empire, San Diego, Orange County and LA. 

A hybrid approach, which involves selling one rental and investing in a multifamily property, is suggested for long-term goals.

I know this isn't the usual STR approach as most are going after high end vacation spots, etc but to me this strategy is low risk as I'll make sure the numbers work so that I can convert to LTR if needed. 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.