This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

Hello, I am looking for a decent (readable) tax book for real estate investing. 

You can buy something like a cheap Arlo camera system at Costco and pay for the Internet connection in one of your units.You could ask law enforcement to do routine drive-bys or safety checks.

I would strongly advise anyone starting out not to be in a rush to skip steps, but rather to take the time that it takes to save for the first few to learn and pay down "the dumb tax" of figuring out what you don't know. 

If you're concerned about issues, make sure to have a camera pointed at the driveway, smartlock that logs all the comings and goings, noise monitor inside and you can even place one in the backyard, and lastly get damage rental insurance on each booking that the guest pays for by baking the charge into the nightly rate.

There are no current regulations besides the county taxes.

Even if using a pm you’ll typically pay more for str management than ltr management.With that said…. when I finished a large renovation on my duplex and was ready to refi I searched for and found a tenant who only needed a place to rent for a couple months.

What if a tax accountant has a lot of knowledge and experiences of tax laws including investment, would it matter?  

@Irene GustaitisCalifornia is generally more cumbersome than other states when it comes to taxes and filings.

I would have the HELOC as well as mortgage to pay.