However, private financing options are becoming increasingly popular for scaling portfolios.Zoning and restrictions: As you mentioned, regulations for short-term rentals, such as Airbnb, vary significantly.

Taxes are private, 1099 are private.  

@Ji Yang, I advise reading articles by @Ian Ippolito (also in BiggerPockets) online (google him) about how to vet sponsers and what to look at in a private placement memorandum.

It is an ugly, tragic reality in California and everywhere else where it exsists.When I moved from Canada to the US it was shocking that I had to stand in line at 5 am at the free clinic w/10 other people just to get medical care for strep throat.

This is true for all private money lending situations..

I would talk to a number of residential, private, and commercial lenders.

I'm presently a facilities engineer by trade, who does some construction and maintenance for landlords on the side, hoping to get back into the private real estate game.

If you owned a few thousand rental properties, you could argue that owning a private jet is a significant time saving tool and well worth the cost.

Because I am partnering with them instead of simply using them as a private lender, they are getting equity in the deal and splitting the profits with me rather than charging a premium on the interest payment.Im not really worried about the strategy, it is solid with low risk.

I would have a house already but that is used as rental and I bought it using private lenders.