The capital stack especially in CA is VERY complex and typically involves everything and more that you mentioned.

What we're getting here in CA is unpermitted, non warranties work.

Also keep in mind when I started funding investment rentals in 2002 for CA investors 100.00 a month cash flow was the goal and accepted.. and even break even or a little negative was fully acceptable in markets with historic appreciation..

A 3/2 in CA is a bargain for $300K while in our markets, $300K would get you a move in ready 4/2 on the water. 

There are several articles that do an exceptional job of explaining who, what, where, why and how tax payers qualify for the ‘STR Loophole’ listed here:The Short Term Rental Tax Loop Hole: A Game Changer for W-2 Wage EarnersThe Short Term Tax Rental Loop Hole: What Investors need to know The implications on the Oregon and California Coastal STR market is a strengthening buyer pool for luxury rentals in the $750-1.5M+ range.

And, at that time and place, it would arguably be silly NOT to do so. 100%.This post was biased towards San Francisco, and California more general to include Los Angeles and San Diego, today in 2024.

We then moved to a different state (from Arizona to California) but we knew it would be temporary so we kept our house in Arizona and we rented out the main house as well.  

I still have family in CA however so I visit often, and investors can drive to their properties if needed from Northern CA.  

It's people who understand that it takes effort to become successful, typically from CA at this point, and have a way of showing those characteristics, do best.

I have a small wholesaling business that operates in King, Pierce, and Thurston counties.