Then, when they're ready to move in, they could convert it to a residence and remodel the house to fit their needs.I hope @Dave Foster and others can provide specifics on implementing this approach, especially when it comes to the long tax arm of California.

They want to keep the note long term but want to leverage or recapitalize using hypothecation (similar to #3 on Chris's list but with notes rather than homes). 

it's really long.

Let’s break it down:Loan: $300,000Base Rate: 8% (P&I: $2,201)Buydown: 1 point ($3,000) lowers rate to 7.75% (P&I: $2,145)Monthly Savings: $56Break-even: ~54 monthsHolding long-term?

They are for long term wealth building and the goal has to be to get them Paid off as quickly as possible you then will start to see real cash flow.. a stable of max leverage rentals anywhere is not going to move the needle on income to you in the first five years.

As we have all seen, Californians are leaving in droves over the past couple of years, and fleeing to Florida, Texas and yep...Arizona.As long as we continue to stay under LAs housing market for affordability, we are going to continue to net those homeowners wanting an upgrade to a bigger house or lot. 

With the new landlord/tenant ordinance that allows the tenant and extended amount of time to renew, this has encouraged prospective tenants to lock in leases for Fall 2022 term starting as early as last November.

Asset based, aka Hard Money Lenders, make the loans the banks cannot make.Very short terms.

Fortunately I stopped borrowing on bridge debt a very long time ago so I've managed to avoid some of the distress you are seeing today as these bridge loans are maturing. 

Purchase price: $530,000 Cash invested: $100,000 My journey into short-term rentals began after years of investing in long-term properties, but it was a podcast that opened my eyes to the incredible potential returns of STRs.