Ideally, I'd like to run a strictly mid-term rental operation, though I'm open to short-term if it make sense given the regulations here.

However, if some carrier is providing this type of coverage, then they better have very strict limitations on the coverage so claims don't get out of hand, or they probably won't be in business very long.

The parties acknowledge and agree that neither party shall have any liability or obligation to the other with respect to the matters set forth herein unless and until a definitive PSA has been executed and delivered by both parties.ConfidentialityThe parties agree that all information exchanged pursuant to this LOI and the negotiation of the PSA shall be kept strictly confidential and shall not be disclosed to any third party, except as may be required by law or as necessary to obtain third-party consents and approvals.We trust that the terms outlined in this LOI are acceptable and look forward to your favorable response.

In response to strictly the bold, BTRs are what I think make a massive rent increase.

We want to invest in RE for CF but after some research found that CA isn't the best state for CF and have strict tenant laws.

I assume these areas have strict zoning, permitting, and design codes, along with requiring state licensed contractors to perform electrical, plumbing, and HVAC which would increase costs.

Be sure to create a clear scope of work with your contractor and agree on strict timelines to you don't pay more in holding costs. 

I will be strict in enforcing March's payment.

@Tony Kim I think you`re just looking at the allocation of money strictly from a Return on  "investement" (being a poor investment), where as the point of a Life Insurance/Living Benifits policy. what your Paying for is in case the individual becomes incapacitated/ has an Illness or Dies, there is a large sum of money that the family receives (and would not otherwise have) to help pay for expenses associated with the unfortunate event, and being able to carry on with life with less of a financial burden compounded with the emotional burden . being able to have retirement money liquid is icing on the cake. 

If it were strictly for investment we would probably not be investing down there.