You get around the AirB&B zoning and current & future local laws & restrictions...

The city also has a lot of restrictions on STR rentals. 

My primary issue at this time is the lack of inventory and the 1031 timelines makes it difficult.Some might say to 1031 into DST's or OZ funds, but there are so many arguments for and against, especially since some have restricting or stopping their distributions lately I've heard. 

I only invest in states where the state gov has restricted local municipalities from restricting STR's.

@Dan T.That’s very odd.

In the end, a majority of inspectors would likely appreciate the fact that you will end up improving the condition and make it safer; especially if you are not trying to use the space as additional utility space or living space; just as long as the Zoning Reviewer doesn't pick your project to become an issue, or just as long as you are not hiding an illegal unit which an inspector notices once on site...One final note;In regards to deconverting your property to a single-family residence in the future; with the Zoning TSL Expansion, many Zoning designations are restricted from deconverting properties away from an existing Multi-Unit condition.

You might be able to beat the average, but the odds are against you.FSBO is a little like selling a brand new watch at a garage sale.

I have 10+ years in the Finance Sector (not investments) but I can help you with your credit and give you pointers on how to improve your credit and increase your odds of better terms in the future.

Long Beach has strict rental restrictions for STRs so you would want to make sure you are looking for a homes within the right zoning. 

@Tyler Herman,401k loan proceeds become your personal capital; you can use those funds however you wish, and there are no restrictions.