All units have vinyl plank flooring.1% rule would make the listing price 570,000 using my LTR data.

Obviously - I have also seen the latter, but I don't think having a loan at 75% or 80% LTV automatically rules you out for strong cashflow.

Quote from @Joe Mills: You are exempt if you meet one of the following requirements:Owner-occupied buildings Properties with four units or fewer that are owned and lived in by the ownerSingle-family homes Homes that are sold or rented without a broker by the owner, as long as the owner doesn't own more than three at onceIf those don't apply, then you must abide by Fair Housing and you must make reasonable accommodations for people with assistance animals.

Prices in Columbus are still low enough to find 1% rule deals and there's a ton of appreciation happening in this market as well.

Understand the 50% rule.  

This means meeting the 750-hour rule, the 50% rule, and the material participation rule of 500 hours.

If not, you can always increase the rent to market value, but my guess is it being California, there are limits to rent increases.There are rent caps but they do not apply to single family homes owned by individuals (not LLCs or Corps) 

The top chart below quickly shows you what the renovated, avg and distressed homes sell for in that area on a $/sf basis over time, so if you are estimating way over the top line, you instantly know something is off, maybe you have an outlier comp on your hands, etc.It doesn't have STR data, because any STR we build must also pencil as a LTR to avoid being upside down if it doesn't workout, so we use normal residential lease data when underwriting our rentals.As for forecasts on the market, I don't do any aside from the current Q trending % at the footer of the charts, and it's really just the current Q's average data/performance held constant and applied to the rest of the quarter (since not fully done with Q yet).

More importantly, when you are looking at your exit scenario of selling, the same question applies but in reverse, are you calculating the new tax rate the next buyer will pay and reverse calculating a sale price based on the market cap rate?

My guess is that this statute will struggle in the courts once they try to apply it.