If you find yourself in a similar situation, I highly recommend exploring the gift of equity deals and using sweat equity for renovations.

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.  

Additionally, high-income earners with modified adjusted gross income (MAGI) over $250,000 (married filing jointly) may be subject to the 3.8% Net Investment Income Tax (NIIT).For 2025, bonus depreciation is at 40%, so consider leveraging it for eligible property assets like appliances or fixtures to accelerate deductions.

If you can come in and operate effectively I think you'll find success rather quickly due to that.BTW - for a property management platform I would highly recommend Buildium.

While having high standards is important, it's worth considering that many Section 8 tenants might not meet requirements like a 640 credit score or $90,000 in household income.

If anyone tells you that you can get 15% cash-on-cash it's either a scam or ultra high risk. 

The neighborhood has been flourishing, making this incident highly unusual.What initially drew me to the property was the potential for high rent and strong cash flow.

Most agency loans will expressly forbid such an arrangement, so if they found out, the odds of having the loan called would be very high. 

High performers everywhere swear by it.

Some lenders even do as high as 1.3.