There are also several hard money lenders as well as lenders that specialize in DSCR or Non QM loan products too. 

.- ID and photo of Credit Card collected for each payment. 

Although there are tons of student rentals, there arealso  tons of post-grad students, resident physicians and other faculty and staff (not to mention the non-UI demand) that make great renters for multiple years. 

Chris,For non owner occ loans in CA or commercial loans if you wish to pool investors one way to do it is through a CA RE Broker who can legally fractionlize a single property into 10 or less co lenders as to thier % interest in said loan. 

The lease of this non paying tenant will expire before that in June.

I gave them $16K down over several payments then recently borrowed $14K from a private lender to pay off the balance.

I would like to use it to collect payments and track bank transactions but I am concerned about security. 

As my avg rental period is <8 days, and I have <14 days personal use at the property and believe I can meet the material participation test, this should be a non-passive activity.Specific Questions on Material Participation:1) Do hours logged for material participation in 2022 include time prior to placing the property in service (i.e. first half of 2022)?

These are ~6-month interest-only loans that have a balloon payment at maturity.

I want to buy and hold and have enough for about 20-25% of 165-175k for investment down payment.