Wholesalers might avoid licensing to reduce perceived risk, though this is a double-edged sword since wholesaling has its own legal pitfalls.5.

Activities like tenant management, marketing, bookkeeping, inspections, overseeing contractors, and compliance tasks all count.Avoid outsourcing tasks, as this reduces eligible hours, and consider adding properties if meeting the threshold is challenging.

Using a 1031 to upgrade to a two-family could help you reduce or eliminate the $1,000 out-of-pocket expense you’re paying now.Also, condos often come with HOA fees that limit cash flow, so be mindful of their impact.

Some programs will do the full LTV that a long term rental would have and some lenders will reduce the LTV by 5%.

This would obviously reduce my cash flow on both properties, as I would be paying the minimum HELOC payment plus extra towards the principal to pay it off quickly.

I would recommend shadowing a few loan brokers for the first 3 months being newly licensed. 

Is there a way to reduce the amount of hours so you have more time for other activities?

For the LTR outside CA, forming an LLC in the state where the property is located can reduce administrative costs and avoid double franchise taxes in California.

This reduces your housing payment and helps you build equity. 

Without the high leverage you reduce the top source of return in CA RE which is achieve via the appreciation on a high leverage property.