Here there is a disadvantage to the investor. 

I think that's an important part of doing business locally.In your case, Kyle, you're operating at a significant disadvantage in this part of REI by not operating locally.

Folks need to get over the idea that they are at a disadvantage if they are a business or if they portray themselves as a business.

If tenants think I'm "rich" because I drive a "fancy BMW" (Its not really that nice, its a 2006 325i with 120,000 miles on it), I think that'll work to my disadvantage.

For example houses without parking, without a yard or tow houses on one lot are not ideal for regular home buyers, but what is perceived a disadvantage for them is in fact great for STR and will allow you to pay less, not have to maintain a yard or garage or even have 2 houses you can rent out independently.

One such advantage is that, assuming you also materially participated in your rental activity, you can take an unlimited amount of passive losses.There can also be disadvantages.

The disadvantages are numerous, and the only fix is a refinance.  

What are the advantages/disadvantages to this method of development?

The biggest disadvantage is that you will likely have to invest several thousand dollars upfront to fully furnish the property.

Hello,Is anyone member of the Apartment Owners Association of California, do you recommend and what its advantages or disadvantages of been member?