When using this type of financing, you can buy as many properties as you can afford without any mortgage limitations. 

Once you put a second loan on a property, it's leverage is high and it's leveraged against another property so the scale is limited.

The low price tag is so tempting, but they just don't appreciate like SFHs, HOA and assessments are frustrating, and loan options are limited depending on the building's owner occupant vs renter population. 

Short term or midterm rentals (under 30 days) can also limit your exposure to the negatives of California's tenant laws. 

the market is unforgiving right now with rates high, prices high, limited inventory, and tremendous demand for both retail and distressed properties.

These areas might provide higher returns due to lower initial property costs combined with tax savings.Rent Control Laws: Be mindful of local rent control or tenant protection laws, which could limit your ability to adjust rental rates or manage your property effectively.7.

All cleaners must go on checkout day and I allow limited exceptions in peak season and weather / emergencies etc. 

It's outside of the city limits and already zoned multi-use (previously used for a business and a home). 

Oxford House (https://oxfordhouse.org) is the biggest "peer run" sober living home nonprofit organization in the world, they lease about 3,600 homes nationwide and is a good model to study as well.

Ian,With the limited of info known, the fees do seem slightly steep.