ROI: The returns are not stellar, but they are steady.  

That's the key; well maintained airbnb make for a positive return visit. 

You may want to keep that in mind, thus some of the responses are going to be geared toward that end (i.e. the best return on your investment). 

@Shmuel Waldman The big issue I see is your cash on cash return being less than 10%.

If you are soliciting people that you did not know before then they need to have a worth of 250k to be an accredited investor .I've talked to flippers who basically pay a return on money to people who go into a deal with an annualized rate and then maybe some basis points.

You do not want the cheapest tax returns in town.

Deferred maintenance is often a simple/cheap (relatively) fix, but neglect can be the cause of major systems failures or issues, which can destroy your returns, so be sure to have a very thorough inspection.

All of these areas, with the exception of the very center stuff -- midtown/montrose/downtown, can be found with great returns. 

Investing in Sacramento for cash flow comes down to what you are expecting in return and what type of tenant and area you are okay with.

The interest is income to bank, and it should be deductible somewhere.The cash that is taken out as equity refi  will make the investor whole, just as distribution or return of capital.