Sometimes the best investment is found in a 'transitioning' market that is just outside the 'great' market and is in play to be the next great one. 

Not the cash flow play a lot of people expect. 

It's a great strategy but I agree with @Jack Seiden, having roommates at 30 isn't ideal.

Expect any step needs to play well w/1031.

On most any day you could find people walking dogs, or children playing in the area.

Any help is much appreciated - obviously a short term rental would be ideal, but it looks like thats out the question for now. 

Curious how this will play out in the courts (granted it's LTR) and affect pricing products used for STR such as PriceLabs (which I use but have to seriously manually adjust for very specific reasons).

This option is ideal for penalty-free investment but comes with added complexity and strict IRS rules.Alternatively, a 60-Day Rollover allows you to withdraw funds and redeposit them into an IRA within 60 days to avoid penalties, though it carries the risk of missing the deadline.

It’d be interesting to see how that plays out in the next few years.

I deal with a number of CA investors that take this same approach.