Now you have a whopping 12,000 when lenders want about 50k in a 5 mile radius minimum.Now if an area has 200k in 5 miles and growing by 15% to 230k with affluent area that can be a positive. 

I can see an explicit exception in CA Tax Code § 17561 that says you can not use the qualifications in Section 469(c)(7) (Real estate professional) to render that income as non-passive, but I see no callout for 1.469-1T and, as such - as a non-CPA - I do not (yet) see a reason why we cannot follow the same rules for CA that we do for our federal taxes; e.g., if the business is not a "rental" business per tax code, we count that income as non-passive and offset other income (W2, etc) similarly.Does anybody else have some guidance (or opinions) on this matter?

Just an FYI, Booking.com came online in 2000.

If you're willing and able, I do recommend the "house hacking" strategy which is just a fancy name for buying a rental property and living in one of the units, because you'll get very favorable financing - an owner-occupied fixed-rate 30-year mortgage.I'd also say, analyze that property as if you won't live there and it's a pure rental, and make sure the property is still cash flow positive if there's a tenant in your unit because then you'll know if it's actually a good investment.And when you analyze it, include payment of a property manager in your #s because if you don't, and doing so would make it go cash flow negative, then you've just bought yourself a job because you literally can't step away from managing it without losing money.

@Malachi Gutt, Dallas is an exciting place to be investing right now.

.🚗 Operations Management – I spent 10 years working with my best friends as an Operations Manager for his families high-volume auto accessorizing company where I mastered my craft.🏡 Real Estate – Eventually, I became a licensed realtor and landed a position with a top-producing team at LIV Sotheby’s International Realty in Breckenridge, CO.

You might also want to look into DSCR loans since it’s an STR.

This is an industry problem. 

While not everyone's going to create an Airbnb out of a 6-ton potato, her story does seem to have lessons for new STR investors. 

Keep in mind that office is down right now and it could take an extended period to fill.Try to determine why it hasn't sold for 2.5 years.