But you also have to apply your level of risk aversion or risk adjusted return.  

Nonetheless, I could see applying this law but only to rentals owned by a single person above a certain number.

If the tenant's concern is that their credit score would take a short-term hit from the credit report, then I think it is a legit concern (if their credit is slightly less than what it would be when they're trying to apply for new rentals, for example).

Selling your share at fair market value could avoid gift tax but may trigger capital gains tax for you based on the sale price and your cost basis.In California, the transfer may also trigger a property tax reassessment under Proposition 13 unless a specific exemption applies.

You might check with your Self-Directed IRA Trust Company/Custodian, they might have a brokerage connection capability where you can setup a brokerage account tied to your IRA, then you can with that brokerage to invest in various public market investments, in some cases stocks, mutual funds, ETF's, treasuries, and CD's.

And if it were set up where everything went through a title company so the buyer pays the title company, they manage the buyer's loan (from me), and the title company ensures my mortgage is paid without my direct involvement... what parts of the transaction would feel risky or not worth the headache to you? 

@Joseph Sakic the "pain" is directly related to:1) How much your current PMC cooperates2) What paperwork you already have or can get to send to the new PMC

The more mature platforms that are designed for landlords/property managers include Rentec Direct, Buildium, Appfolio, and Rent Manager.

If you’re looking for ways to make the numbers work, sometimes that means evaluating different markets, financing options, or property management strategies that help mitigate risks like vacancies and maintenance surprises.You’re not alone in feeling like 2025 could go in multiple directions, but one thing remains true—real estate continues to be one of the strongest vehicles for long-term wealth when approached the right way.

I invest in both direct real estate (via residential rentals) and syndication/crowdfunding passive investments.