Moreover, Japan tends to see constant new construction, meaning there are frequently newer properties to compete with.  

They tend to cost more to construct then they add in value, they are generally more valuable for a property you are holding as a way to generate more income.

Further, people committing to a rental for 6 months or more tend to treat the furnishings with much more care than the 30 day stay tenant. 

They tend to have less fluff and more actionable useable content.

I would tend to agree with the other CPAs typically.The 500-hour test is one of seven material participation tests used by the IRS to determine if a taxpayer is actively involved in a trade, business, or rental activity. 

.), I'd recommend that the residential units fully cash flow the loan as my experience is that mixed use properties are tougher to finance as most lenders tend to prefer one or the other and something in the middle gets more difficult.For example, and granted I don't know anything about the area/neighborhood, I would expect this property (https://www.realtor.com/realestateandhomes-detail/111-NW-Har...) to be easier to finance than the mixed-use property you mentioned. 

Tenants are often lat and new owner tend to get very nervous.

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

They tend to build out not up in CC from what I’ve seen.

This opportunity doesn’t occur frequently but it takes these attributes to take advantage when they do.3 - Blind luck - do enough deals, the unique opportunity tends to present itself.