We're looking for ways to increase our income and have decided to obtain an LLC.Initially, I planned to use the LLC for a rental arbitrage business in Anaheim, CA, near Disneyland due to its high tourist appeal.

There's a variety of ways to get a deal in front of you (I'm mostly a flipper), but basically if it looks promising, I run custom comps queries and check the current & past $/sf of renovated/distressed product in that city or zipcode.Here's a chart on 90066 I generated from my tool under Market Stats > Sales Data > Specific Zip Code:- My above chart (more available) shows the Avg Renovated $/sf (High) over time in this Zip Code, something completely different than charts/providers based on Averages/Medians only, like every other platform (RedFin Below, https://www.redfin.com/news/data-center/):- Can't select smaller locations such as City or Zipcode for their $/sf data, so it's useless helping me underwrite/verify a deal.- Can set Zip Code for Median Sale Price data, but again it's the median/avg so it's useless helping me underwrite/verify a deal.Then if that looks decent, I'll run Sales Comps, and get a quick summary of some key metrics based on those comps.

However, being worried about finding a qualified tenant in the winter certainly wouldn't be an issue here... the demand for rentals is so high.

Perhaps focus on homes with longer days on market, ones that didn't sell during the initial two weeks because priced too high or needs updates but would still pass a loan appraisal. 

For me, the risk is too high IMHO. 

Partner Driven was interested in the Ashe Park Rd deal in Jefferson, NC, due to its high profit potential and quick turnaround.

I have a single family home renting furnished for a very high amount for the area.

A company comes out twice a year and inspects the AC and replaces the filter (very important if in a high temperature area), inspects the plumbing and electrical, and provides feedback regarding any potential issues.

The risk level is too high, I've been around the block a few times and I would most likely pass too.  

35-40% is a more standard realistic operating cost. 50% is too high.