California views all rental activities as passive activities, regardless of whether you qualify for Real Estate Professional Status (REPS) under the federal tax code.You are correct in that the minimum hours required for REPS are 750 hours.

As someone who has spent years in the real estate industry, I’ve learned that success on Airbnb isn’t just about listing your property—it’s about strategy.From pricing tips to guest communication, I’m happy to share insights that can help you maximize your income.

Britt,My firm has evaluated some smaller properties (under $500k) in the past for cost segregation, and it generally does not cost justify moving forward, since the benefits are small, and typically the tax liability on the income is minimal if any.

Typically 75% of rental income can be applied towards your DTI for qualification. 

If you want private investors, start by asking friends, family, or colleagues in your network who may wish to a passive income opportunity. 

This aligns with my interest in passive income.

Deals like this, with additional income potential (garages, ADU, etc.), could help you cash-flow while you build equity - best of both worlds.Lastly, targeting properties that have been on the market 30+ days could be a good start.

Use umbrella insurance as an additional safeguard, especially if you opt not to form an LLC.Avoid S-Corp taxation for rentals, as rental income is passive and not subject to self-employment tax.

You mentioned W-2 income as part of a way to save on taxes. 

I'm confused why would you say that rental income is taxed in an IRA?