. - some strategies I've seen California investors use to lessen negative cash flow: house hacking, mid-term rentals (people temporarily displaced from home renovation or insurance reasons like fire), rent by the room, Short Term Rentals. - The ultimate house hack, live in the small ADU unit and rent out the two levels of the main house on AirBnb in San Francisco (I would have thought STRs are oversaturated in S.F. but it worked for them and they stay fully booked).

Catch about 1 out of 3 people now.  

What are the biggest challenges people have faced with this.

You need a license if you're going to manage other people's properties.

@Christian Pichardo not a fan of Tom Cruz as he exaggerates everyting about his success to sucker people in:(Let's address several issues:1) Buying on recommendation of "Guru": what guarantees did they give you about performance?

Immediately after the weak jobs report, we saw unemployment applications come in way below projections.The economic pain people and businesses are facing in 2024 is real.

As a sidenote I see people doing this and jacking up the price of the home to seller finance to above market value - if you do this you better be VERY clear with your investors that you are writing a $300k loan on a $250k property as if you do not you can get in some serious hot water later on down the line when doing valuations of the company. 

ThanksDan there are people who do "Gator" lending which is a guru course taught about this type of lending.

People will always vacation.  

The subgroups are usually smaller and easier to get to know people.