Helps with your debt to income, better opportunities at cash flow, and typically requires less down to purchase.In regards to challenges, I usually build in an extra 10-15% to deal with things that I can't see behind the walls, including dry rot, electrical or plumbing issues, etc.

I could be wrong but I thought I saw that Sacramento requires primary residence for the owner for STR.Do you live in Sacramento or nearby ?

I am also looking for tax optimization as the business will require cash reserves and is a high risk business from a liability perspective.

Scaling up properties requires cash flow or equity, continuous education, networking, mentorship, patience, and persistence.

Is there any sort of requirements for the student to be accepted into the program or does the 8K make you automatically accepted? 

If you get a quote significantly below the numbers above you need to ensure that the contractor will actually execute the work and perform it to the required standard. 

To intentionally reduce the leverage more than required is a foreign concept to me especially in the San Diego market.  

It can strengthen your relationship with your property manager and demonstrate that you value their contributions to your business.It helps ensure compliance with lease agreements.Many lease agreements require landlords to name their property managers as additional insured parties on their insurance policies.

A "lake house" might be in a residential zoned area where a commercial use would be prohibited or at least require a variance (approval) to make an exception.

This requires doing math, patience and a learning curve.