If you decide to go the Airbnb route in either city, be sure to check local regulations around short-term rentals to avoid any surprises.

We financed this deal through a local lender in Hawaii with a 1/1 ARM at 8.875%.

My question for this group of knowledgeable folks:- how does entity swap work ?

Without solid knowledge on this subject, you can easily end up in hot water. 

I want to find something local (Los Angeles area), move in, do small renovations to possibly build up more equity, do a 1031 exchange, and find something better. 

@Audrey Sommer I prefer investing in my local market (Snohomish County).

I'd check local STR FB groups and see if you have a local Real Estate Club.You can offer your services there, maybe for free in exchange for the experience.

The information provided is for general knowledge based on my experience and should not be considered tax or legal advice.

I tried to put the pieces together to build a solid team out there but it's really tough unless you have someone local to help you run it or are willing to drive back and forth.

To connect with potential partners, consider attending local real estate investor meetups where you can network with those looking to invest passively.If you’d like to explore HM financing options, feel free to reach out—I’d be happy to chat!