A year of rent sounds great on the surface but I’m wondering why they wouldn’t just pursue a normal year long rental…maybe they’ve been bad renters or have bad credit or low income.

In bay area you have to be extremely creative and think like business person to create value there re lot of opps but if you copy paste the normal way of finding cash-flow, you would not be succesful.

Alternative way could be purchasing this property with normal conventional rehab loan, which is a standard 30 year fixed loan + rehab funds being funded up to 95% LTV.

Am I obligated to return the deposit (minus any that goes to cover damages beyond normal wear and tear) even though he breaks the lease?

Hey y'all,I currently own a duplex in Normal Heights, San Diego area.

You'd be better off just investing in one of the many note funds rather than straight-up gambling for a couple hundred extra bps. 

Rates are high...that's the new normal.

As long as we keep detailed records and receipts for this and can show that these meetings are for our business then we can deduct our expenses in the normal way even though our kids are with us right?  

Is it normal to give them rent discount? 

Regarding the other types of loans, based on your explanation the conventional loan seems to (on average) have a lower down payment but takes into account the normal loan factors whereas the debt service loan doesn't but with a slightly higher down payment, proof of income generation through the property, and never being able to live in it.