There is so much mixed information out there on the CA franchise tax, so it would be really helpful if folks could weigh in along with any authoritative sources of information, e.g. tax code / legislation, previous court cases, or even FTB publications.

Read the article in the link below.TALLAHASSEE (News Service of Florida) - A controversial effort to further limit local governments’ ability to regulate and inspect vacation rental properties is advancing in the Florida Senate, as the proposal’s sponsor on Tuesday assured critics that the legislation is “a starting point.” https://www.mysuncoast.com/202...

When I've looked at the legislation for the cities/counties where I have properties, it's all the same, the municipalities are looking to collect missed revenue for all of the business licenses not being issued and paying a license fee, the various regulation authorities not fining vendors who are out of compliance, or enforcing codes, additional taxes assessed for the hospitality industry not assessed to the every day person. 

It's actually the other way around and CCanaveral had it in place prior to state legislation, thus grandfathered.

If the loan was kept in house, never to be resold they could possibly do what they want to if could could convince them of the value of the rents.The underwriter is likely going to think that if they had to foreclose on the property because of a pandemic or anti STR legislation they could only value the property per comps.

You dont want to create a business model that you foreclose on your buyers every couple of years and get a new buyer in there only to foreclose on him down the road.With all that said, you can do 1 owner finance to an owner occupant without needing an RMLO and follow all the Dodd/Frank and other newer legislation that has to be followed by people or businesses who do more than 1 per year.

One other mention before you sink in the cash, check with your local municipalities - there are all flavors of legislation, some good, some not good and you don't want to mess with Uncle Sam.  

Canada and the US have a reciprocal tax treaty that allows individuals to pay their taxes in the US and have it offset against the taxes owed on the Canadian side, provided that you respect the provisions of the legislation.

If you go there you will likely want to stick with short term rentals to avoid the tenant friendly legislation.

If you can build your financial nut large enough so that the majority of your income comes from dividends, you could lower your marginal tax rate by as much as 20% or so, depending on the current legislation.8) Hedging is easier.