$200/month divides into the $100K initial negative equals 500 months to recover the initial negative equity.Let's double the cash flow to $400/month.  250 months to recover the initial negative equity so over 20 years.Let's reduce the negative equity position to $50K (which likely is less realistic than expecting $400/month cash flow at that rent point), you are at over 10 years to recover the initial equity position.Now let's do it with all cash, no financing.The 50% rule state $900/month cash flow.  900 * 12/200K = $5.4% or about half of lifetime return of S&P 500, or what can almost be achieved with a zero work, zero risk CD.I see no way that someone who understands the numbers will call this a good investment.Note just because an investment is better than most other investments in a market does not imply something is a good investment. 

The one in Naples took a 4 bedroom, and divided it up to 4 Airbnb units. 

Is there any way to divide a lot under SB9 without having to live on the property for 3 years as required by the current rules (at least in Riverside, CA)?

Assess Your Goals and Current Structure: Beyond replacing your handyman team, it’s important to evaluate your portfolio’s current management framework and clarify your long-term objectives.How are responsibilities currently divided among you and any co-owners or family members?

My “reasoning” is based on two points1- the current system of property records filing in a million different jurisdictions with expensive title searches necessary for almost every title transfer and mistakes still being made can be made much less expensive, much faster, and much more reliable through migration to some sort of “blockchain” National registry.2- Numerous investments have been divided into, and offered as tranches of the whole.  

Blackstone’s non-traded REIT now owns about half of all the real estate within that sector, according to NAREIT.Setting a priceRAD sets its share price by tallying its net asset value — the total appraised value of its real estate and other assets, minus any money it owes or other liabilities — and dividing that figure by the number of shares it has outstanding, according to the circular.The last time it publicly broke down its share-price calculation was on Sept. 30, when the stock was selling at $18.52: a net asset value of $27.3 million divided by 1.47 million shares.RAD’s properties are appraised, in part, based on the income they generate as rentals, according to the circular.But some of the rents in the document’s inventory of RAD’s holdings appear to be overstated, in light of the buildings’ conditions, as characterized by L&I.

If it's not already grandfathered in as a multi-unit, you take the lot area divided by 750 sqft/du (for R-8 zoning), and that's how you come up with how many units you can do.

I just want to make sure we are dividing out the cash flow we can spend versus the cash flow we should save.

Instead of owners receiving their own rents, they pooled the money for all investors and divided it out according to the percentage of their investment.

For example, instead of an initial 6-month lease at $1,200/month, and then re-renting it in the summer with a higher rental rate, you could market it as a 16-18 month lease term (again, great suggestion by Tim) at $1,600/month with a "1 Month of Free Rent" special which you could either divide evenly across just the first 4-6 months of the lease, or prorate over the entirety of their lease term.