Rule of thumb: I've been told "Never fall in love with a property".

The 1% rule is an old metric.

I would check the rules in all of your jurisdictions.

As a business, a judge will expect YOU to know all the laws and legal procedures.Make a minor mistake and the judge is unlikely to give you a break and may rule in the tenant's favor.The judge will see the tenant as a consumer and may give them a lot of leeway in court, even give them borderline legal advice.You are in over your head, not having the knowledge to properly handle this.

California also has Proposition 19 rules to consider, which might impact property tax reassessments if the transfer is not between parent and child. 

Additionally, the replacement property must be real estate to qualify under IRS rules.

3️⃣ Local Regulations: Before you invest in a short-term rental, it's essential to understand the local rules and licensing requirements.

Hennepin County, No. 22-166, Slip Op. at 14 (May 25, 2023) ruled property owners can reclaim any surplus equity resulting from a tax sale.

That's why I tell a lot of my clients that it's a perfect time to invest right now when you can still find the 1% rule and positive cash flow especially in properties here that are still 120-180k in purchase price.

For BRRRR, focus on the 70% rule to build equity.