3️⃣ Local Regulations: Before you invest in a short-term rental, it's essential to understand the local rules and licensing requirements.

Asking in the correct forum will get a better response.Read the RULES!

California also has Proposition 19 rules to consider, which might impact property tax reassessments if the transfer is not between parent and child. 

So is it a matter or reaching out to lenders saying I'm willing and able to act as a broker and ask for their terms/rules?

The money needs are not great and the cost of bringing in investors etc may exceed what is justified for such a small deal. 

You’d like to think you get what you pay for; however on this instance you seem to be over paying for hands off passive real estate.If passive real estate is truly what you are searching for, have you considered 1031 exchanging into a DST (Delaware Statutory Trusts) or other rules of syndications?

Again, treating folks with housing support funds with the same dignity and respect as everyone else, usually nets quality clients that listen and do their best to follow the rules.

Although I'm not ruling out doing another 1031 in the future to add a property or two.

From my understanding, as long as you intend on doing a STR when you close, there are no rules against changing your strategy after closing, especially if you find that something else is more profitable.So in our case, the lender determined an STR would bring in ~$3500/month (with all of their conservative factors), but now that we operate it as a huge 3300 sqft Co-Living property, it actually brings in $7000/month.

Just make sure to look into the HOA’s financials, rules, and rental policies before buying.