@Preet Oberoi Purchasing a short-term rental (STR) or tiny home to offset W-2 income with depreciation can be effective if structured correctly.

(Usually you cannot use prior employer history until you have been at your new job for 6 to 12 months, depending on the underwriter to show that you are maintaining the same level of bonus/overtime/commission income that you had at your prior employer).

Newsom signed that order post-LA fires making it illegal to increase rent beyond 10% in those areas impacted by the fires (one source: https://www.washingtonpost.com/business/2025/01/25/la-county... )If I understand you correctly, you're saying that PriceLabs is behind the increase in rates for your properties, taking them to either 10% or beyond of an increase which I'm sure is something someone on their board or engineers must be aware of- as an issue.

I completely understand the importance of maintaining a professional relationship with tenants, and I will definitely keep that in mind.To answer your questions, I am still working on narrowing down my price range, but I’m aiming for something budget-friendly as this will be my first purchase.

If I understand correctly your siblings goals are to sell their rental properties, use the funds to purchase a primary residence they'll eventually move into, and limit their tax liability correct?

Correct - Track all your income and expenses.The bookkeeping will determine whether you are profitable or not.it will also be good to compare from year to year your income / expenses to see what expenses you can potentially try to limit.I.E.

Of course a visit to the county records office and -correct reading of the legal description would reveal that the tennis court lot was the one being sold.  

I like new construction since there isn't any deferred maintenance and the properties should be relatively maintenance free for the first couple years (although it's good to include maintenance/repairs in your pro forma and maintain reserves just in case). 

When you start, the company may give you a small existing portfolio, but then you'll have to maintain & grow it to make a decent living.You could also work as a leasing agent at an apartment complex.

Since you retain control of your money, how does one consistently maintain 30-50% cash on cash return?