If you're going to be able to consistently invest solid chunks of money every single year, then a big part of your focus should be on not losing money versus hitting crazy returns. $50k invested per year at a 10% annual compounding return is just over $9m in 30 years on $1.5m invested.

Make sure to get contractors out if there's any hesitation about a given building systems' integrity. 

I bought the home as is but a new septic system was installed in 2019, I have the county record on it.   

I just found out that LA will be changing its system to something similar to what Florida does.

Hi @Christopher 'Bear' DeSanctisThe debt service coverage ratio is derived from measuring the PITI (+ Association dues if applicable) versus the gross monthly rental income.

The system protects the criminals more than the law abiding business operators.I agree with others though, turn it over to a local competent collection service. 

When you move into the home as a primary you are now able to take out a higher LTV for cash out 80% or 90% Heloc versus Investment.Fix up the other smaller side move out and go up in the rent and use some of the cash out funds as a down payment to buy another property.

As copied and pasted from above-(1) more than one-half of the personal services the taxpayer performs in trades or businesses during the tax year are in real property trades or businesses in which the taxpayer materially participatesThat's how I understand the W-2 problem... it is hard to say you spend more time on real estate than any other activity if you work 2,080 hours.Another consideration is how much you rely on the W-2 income for lifestyle versus rental income.

If one system malfunctions, you'll be out of the water.

Most will tell you STRs are a lot of work and I won't disagree with that if you don't know what you are doing.I will say though, we have been able to put together some rock-solid systems and processes to streamline that to minimize the work and maximize the returns.My business partner and I are actually writing a chapter in a new book that is coming out this year about unique stays.