Additionally, maintenance/cap ex expenses are high due to age.

And if you have that high income and don’t mind chunking down a HELOC then that is the strategy I would probably take.

Putting nearly $50K in cash into a $125K ARV property seems very high.

Buy a TLC or "ungly inventor" and use some of the cash to do some renovations before or after depending on if the properties were "Subject to" or would pass an appraisal and had high ARV potential for remodel or build out.

There is a lot of speculation in the market that investors should not buy real estate during a bear market or high inflation period.

If you want to get a weekly dose of STR info I highly recommend signing up for Garrett's STR news that is emailed weekly, here's how to do that - https://app.tango.us/app/workflow/BiggerPockets-free-Short-T...Keep us updated on what you decide and how things turn out!

I work in the area and agree with Jake regarding lenient ADU laws and high price points.

That said, expect to deal with a fair amount of fluff leads.The two best strategies I’ve found are inbound methods: direct mail and Google Ads.Direct mail can be expensive, but it can also yield highly discounted properties.Google Ads, on the other hand, doesn’t require data extraction like calls, direct mail, or texting.

The outcome has been highly positive.

Even though climate risk (fire) is high, my risk does not seem high.