Tenants may not care as much, therefore there may not be a big discount for the lack of space. 

Quote from @Caleb Rehg: Quote from @Will Gastonstonton: @Caleb Rehg This thread may be helpful: Nearing 1,000 College Students: Here's What I've Learned Sounds like you know what you are talking about in this space. 

I’m a young entrepreneur in the real estate space, and I’ve recently started my own company.

DSCR recently came popular in the loan brokerage and private credit space with the rise of STRs and MTRs.Your local bank lenders will have the best rates typically.  

If the property breaks even, or operates in the red currently, it will only operate deeper in the negative (unless you find a strong ROI like creating more bedrooms, convert a non living space to living space, etc) with another loan. 

I am new to the real estate investing space. 

This is because REPS reclassifies rental losses as non-passive, allowing them to fully offset active income.

Leverage your existing equity to invest in smaller properties, such as a mixed-use or retail space, to gain experience and cash flow.

For example, I've had a couple of 3+ bedrooms sit for a longer period of time because they only had one parking space available (and no on-street options nearby).

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.