Another idea to consider is the FHA 203K renovation mortgage, this is another excellent tool to use because of flexibility and other worthwhile features you might consider researching.

If you're looking to scale and take full advantage of house hacking, look for a property on the larger end of the spectrum, ideally 4 units.

But one of my clients has most of his portfolio out there.He buys cheap, renovates and rents out.

(Some people buy a run-down place and renovate it before starting the STR. 

This apartment required a cosmetic renovation that is going to run me around $27,000 to redo.

Landlord-tenant regulations are a bit complex in California and getting hands on is the best way to learn before expanding into larger investments. 

We just started managing 4 tiny homes on 1 lot with a shared pool and they are booking great at a rate commensurate with larger homes.   

To do this, they have a team consisting of an inspector, a makelaar, and renovation professionals.However, as Ken M. mentioned, having someone trustworthy there to manage everything would also be a key factor.

We complete renovated and turned into a successful operation with a current 11% rate cap. 

Between working around the renovation materials to the 35 minute commute to the first two units I’m having serious second thoughts about this.