I also want to say that if you see this as a true passive investment, you'll be in for a surprise because it's anything but....usually.

I've done this a few times and it usually results in a monetary payout or the seller kills the next buyers deal. 

I purchased my first rental property a month ago and I’ve learned more about real estate and home building in that one month than the rest of my life combined.

We've since increased their rent to market rate, and now we're experiencing late payments.Family Member as Tenant:Issue: Our family member is behind on rent for more than 5 months, with a rate below market due to their relationship with us.Behavior: They have made excuses about financial struggles, yet have been seen treating their new girlfriend to fine dinners and outings.Impact: Both tenants consistently pay late and have shown complete disrespect to us, the property owners, despite efforts to ensure their happiness and success.We'd hate to impact our relationship with them, but right now, they're hurting us and our pockets. 

But then, something incredible happened—his business started thriving.With fewer daily distractions, Michael had time to find new investment deals, build relationships with private lenders, and even take a vacation.His portfolio doubled in size within two years.And for the first time in a decade, he wasn’t stressed.The Lesson: Let Go to GrowMichael realized the secret of successful investors: You don’t build wealth by working harder—you build wealth by working smarter.By letting go, he gained more than just free time—he gained a scalable, sustainable business that could grow without burning him out.Are You Like Michael?

@Jose Morales Private money loans are going to be better than other types of loans on these types of assets.

California does not recognize real estate professional status but they do recognize a STR being treated as active.However, be mindful that California does not recognize bonus depreciation so your federal benefit will be higher than the state.

You'll lose rent while property is vacant, and you'll probably have to do more repairs to attract a new tenant than you would to keep the current tenant.Is all that worth requiring a tenant to use one specific payment platform?

However, don't have any of those loans anymore (most paid off).The only thing I do that you don't, is use trusts, and love them and they have saved my bacon a number of times.When you said all those loans have paid off, are you utilizing other methods than Sub2 at this time?

I love talking about this stuff so much that my kids complain about it constantly, so I thought helping other people understand some of the general contours of the industry from a legal perspective would be a better outlet than lecturing teenagers for a fourth time about what a defeasance is!