You are positioned right at one of the top 10, if not 3, STR markets on the planet buddy! 

Yet the payment processor is issuing the 1099-K to the property management company.

In Columbus, you can still find the 1% rule and there's amazing appreciation potential due to how much population growth, job growth, and companies moving/developing there (recently Anduril just announced another 4,000 jobs coming to Columbus Ohio on top of Intel, Google, Amazon, FB, Nationwide, Ohio State University, etc.).

So now your causing "harm" to the entire state of CA with such added debt load. 

These are people whose full time job is to effectively manage the assets on behalf of the investors. 

Hi John, I also rely on a property manager for the the fact that my properties are out of state. 

But either way, it is a fairly substantial number of States and many of which have large population centers.

As agents we tend to feel the pulse of the market shifting before the data hits the newsstands.

So if you provide a good letter of explanation, then you could do more than the 10% as long as it falls within the 50% of the gift funds. 

You say that you are investing out of state.