I could maybe sign up with that theory if the GPs were using the side hustle money as a way of cutting or eliminating their fees & salaries altogether while they try to hang in long enough to hope for enough rate cuts to refinance or the market to unfreeze and let them unload at least at break-even, but I bet none of them do anything of the kind. 

If you are in a high fire zone, the California Fair Plan is likely your best bet.

bet dollars to donuts its leveraged to the eyeballs. 

Stop hanging out with your deadbeat buddies who spend all day drinking, talking sports, and otherwise wasting away.

Hell, I might be even-steven if we had one, and I'd bet money @Russell Brazil and @Nathan Gesner would be there with me despite the fact they're two of the smartest dudes in here because they're not soft pedalers.

Most criminals defrauded the IRSI wonder what would happen if the people who combined lost like $2M all sent 1099's to him-I bet that would wake up the IRS but not sure if it would impact their claim later on.

Stop hanging out with your deadbeat buddies who spend all day drinking, talking sports, and otherwise wasting away.

I bet there are some ways you could proactively plan so the problem almost resolves itself. 

I think your thesis is sound in general, but I would want a hedge on my bet.

I imagine you'll have the same issue with the unpermitted kitchenetteIf you can rent the property as a MTR then listing on Furnished Finder will probably be your best bet.