Short-term rentals would be a solution, but due to strict short-term rental laws in rent-controlled areas of Los Angeles, options like Airbnb are typically not feasible.At present, I have a $5 million property in Encino with two units that we cannot rent out short-term due to rent control regulations, and the numbers don’t work for a long-term rental either.

If you buy in the proper STR areas there is practically zero regulation risk. 

Legal ConsiderationsZoning & Regulations: Make sure the property is zoned for a duplex and complies with local regulations.

@Lena CastellanoTo prepare for your first real estate purchase next year, explore house hacking options, research rental regulations, network with contractors and investors, practice deal analysis, join local REI groups, and connect with agents.

There are pros and cons to long term and short term from a rental management side, and purchase/acquisition.Long term = lower vacancy, lower expenses, potentially lower revenueShort Term = higher vacancy, higher expenses, potential for higher revenue, financing is more expensive than long term rentalsWatch out for local STR regulations, they vary from city to city.

And do not go into over-saturated, over-regulated areas....do your homework big time...

For instance, posting a home could potentially violate various laws that listing agents are trained to navigate, such as Fair Housing regulations and the recent NAR settlement.I’d recommend establishing a solid relationship with a listing agent.

Holding the lease unenforceable by the landlord not only advances the intent underlying § ATCP 134.08(3), but prevents the objectives of the regulation from being wholly undermined.

This may be easier to find in smaller towns or rural areas.Growth potential: Research areas with growing populations or emerging business districts.Tax incentives: Some localities offer incentives for small businesses or specific industries.Infrastructure: Ensure reliable internet and necessary utilities for your business.Potential locations to explore:Atlanta suburbs: Consider areas like Decatur, Marietta, or Lawrenceville for a balance of affordability and proximity to the city.South Carolina: Look into growing areas like Greenville, Rock Hill, or smaller towns in the Upstate region.North Carolina: The Research Triangle area (Raleigh-Durham-Chapel Hill) offers opportunities, as do smaller cities like Asheville or Wilmington.Remember to thoroughly research local building codes, zoning laws, and business regulations in any area you're considering.

The IRS and underlying regulations require that you actually perform services to count toward these hours.Have a great Sunday!