The hard money lender didn’t suggest going straight into a long-term rental loan, but honestly, that’s on me for not digging deeper into the options before jumping in.

I have thought about Fundrise (medium success when I invested there), Crowdstreet (I have not invested there but might consider), farmtoghether (20k invested there already) and groundfloor (bad experience so not looking to invest there).Any advice will be appreciated.There is no greater wealth than peace of mind - Buddha - If it's just a redeployment of capital issue into a different market, I would suggest either syndication, or (this is going to sound crazy) into cattle.

I have put the rental price below the market (as suggested by local real estate agents).

I’d suggest exploring a bridge loan that covers a portion of the purchase price along with 100% of the renovation costs.

I strongly suggest you stop, and get a team around you, or it will not end well. 

Hopefully it doesn’t come to that, but he does have two evictions on his record already so it’s not out of the realm of possibility.Thanks @Kathleen Leary for your suggestion for the lease.  

So that’s what I’ll do as you suggested.

I would suggest one or both of you go talk to a Civil Engineer and ask if they can see a way to accomplish what you are trying to do.

Just a suggestion ...

Virtually only ones to have not done well in San Diego RE were those over leveraged at inopportune times.If you want To invest in San Diego, I suggest you save more before starting.