Hi there, If you live in another state it would be very difficult to show that you materially participate, as you need at least 500 hours, considering the IRS sees where your home state is and where the rentals are, it may raise red flags for the IRS if you try to claim that... as a tax accountant and investor myself, even without actually speaking in person, I do not know I feel comfortable suggesting you show material participation 

. § 2A:18-61.1(f) is an indefinite standard and difficult to measure.

The California government will deal with the damage the same way all governments do , they will find a way to raise taxes or get the Feds to pay for it ( that will be difficult with the new administration ) Here is what I find ironic , California has C.A.R.B. to pass regulations on vehicle emissions .

It’s difficult to get ahold of Xander, he hides behind his staff.

Properties typically on a land lease in communities like this are more difficult to get financing on - so not only check the values but also time it takes for these properties to sell to understand your holding costs

Would you say getting loans for commercial units is more difficult?

Like the gentleman above mentioned, the 1% rule is more difficult to find now than in previous years. 

However, in this market i find it difficult/impossible to not have negative cash flow after extracting the value add at maximum LTV.  

Throughout my career as a real estate investor and CEO, I have learned valuable lessons on maximizing the potential of each unit in a property.

That's okay...in many ways, the fact that it is difficult that makes it worthwhile and great.