Many people use this strategy as it seems to be the least risky.

House Hacking Strategies: Examine various house hacking techniques, such as renting out individual rooms or residing in one flat and renting out the others.

Really appreciate the words of wisdom and you sharing the challenges others have faced so I can learn from their experiences.I'm probably putting the cart before the horse here given I still have a lot of educating myself to do, especially across market analyses to lock in my strategy, until I feel fully prepared to move forward with anything.

Money in hand sounds great, but my portfolio strategy (even though it’s currently small) is long term buy and hold.

However, unless I was just looking for a long term appreciation strategy this isn't a great market IMO.

I read Business Loan, not from 401k or against some insurance policy. 

Any recommendations on landlord insurance in Los Angeles for a single family residence? 

what makes it better than other strategies?

You can certainly go wrong house hacking, but the strategy should be one of most low risk tactics for newer investors as you are the landlord in the property you are also residing in.

Perhaps the stress might then start getting to you and lead to an illness & expensive medical treatments that weren't fully covered by insurance.