@Vicente Hernandez, Kudos to you for looking for ripe markets to grow.  1031 exchanges are still comparatively rare compared to the number of transactions that potentially qualify. 

DSCR rates and points are likely going to be competitive with the other options if you are thinking long term and don't mind slapping a 5-year prepayment penalty provision on itI think the answer to your options are clearly just model out the total cash flows and projections of each scenario and compare.

That's going to be way more impactful compared to anything else in this thread.   

The rent is less but compared to the expenditure it’s a much better option in my situation.

If you're able to invest when the market get's more competitive, you'll have a huge advantage compared to the investors sitting on the sidelines. 

Compare that to mature vacation rental markets in your home state of Maine (as a random example).

We pay a managing company to do everything, but it’s still more work compared to long term rentals like paying monthly electric, water and utility bills etc.

You are right CA is way ahead comparing to other states.

When choosing a city or neighborhood for investment, it’s crucial to consider:Economic drivers: Look for areas with diverse and growing job markets.Population growth: Areas with increasing population tend to have higher demand for housing.Rental yields: Compare the average rent to property prices to gauge potential cash flow.Future developments: Infrastructure projects and new developments can boost property values.Additionally, it's vital to get local insights.

Hi @Norma Guardado, I would reach out to several lenders and compare rates/fees.