The 2 biggest down sides in Southern CA is 1) in Single family zoned areas ADU additions add a value far less than the cost of the ADU addition.  

We work with builders to offer their New Construction Investment property off market at pre-negotiated investor pricing and incentives.  

Share your biggest challenges when funding your deals, is it Interest rates, down payments, or something else?

Looking at AirDNA results, my biggest concern is occupancy rates, most of the calendars I look at have large gaps in them, and when you spend close to $500/sq. ft at current prices (in STR-designated areas), your property needs to rent well above 80% or you charge crazy nightly rates.We've also seen very few property management companies that charge less than 25% there (and 25% is rare), and some STR neighborhoods require you to use their designated PM (Desert Colors only allows Red Rock, and they are at 40% commissions - ouch!).

They (The lender) aren't going to refinance you and have no incentive to work with you, nor any requirement to do so.I think you have other confusion to clear up as well.

REPS was actually an incentive purposely put in the law to encourage real estate economic activity.Regarding your question, it is my understanding you would not qualify for REPS, but if you have a more aggressive CPA, they might be willing to make the case.

Unless you own the house cash, in addition to the advice you've received, you can't just transfer a house from personal to an LLC without risking the option of the loan being called since the LLC does not have two years of tax returns.For new investors without cash to buy, LLCs are about the biggest cause of analysis paralysis out there.

I think another element, especially in major cities, will be an attempt to lure tenants through better amenities, competitive rents, and employee-incentives. 

One of the biggest mistakes that investors make is they are not clear on what it is they want to invest in, and what their goals are with their investments. 

I would avoid any upfront fees or applications fees, everything should be paid at closing, so we all have the same incentive to get you to the closing table.