By repositioning the property (like improving tenant quality or adding amenities), you can boost the NOI over time.

This combined with minimum footage for a bedroom means many lofts do not quality in CA as a bedroomDifferent states will have different requirements for what constitutes a bedroom.  

A nice but rental quality unit gets 1500-1650 regularly in that area depending on the size and finishes.

In hindsight, this made sense as their responsiveness, listing quality (photos, description), and understanding of market rates were subpar.

To reiterate, I don't need huge profit margins off these and I do want to offer quality rentals but they do need to make sense.  

Are their listings detailed with good-quality photos?

Be sure to take high-quality photos, and if possible, request utility records that confirm separate billing for four units.

Single night stays in a crowed city are a guarantee for a party.Not a fan of single nights because they invariably prevent quality (ie longer) bookings because they punch holes in your calendar.

This cushions potential value drops.Syndicator vetting: Only partner with syndicators who have a strong track record in different market conditions.Market and asset class knowledge: Understand market cycles and the specific real estate types (multifamily, industrial, etc.) you're investing in.Avoid chasing trends: Just because a market or asset is “hot” doesn’t mean it’s solid.You’re right that this approach doesn’t cap your upside, quality diversification can still generate huge returns while managing risk.Best regards,Drago

these tenant friendly laws seldom matter because the vacancy is so low the tenants want to stay in their units and realize an eviction will make it challenging to ever find a quality rental in this market.