there are more than a few of us who have had this happen to us here on BP.. myself included.

This has included taking a property that was getting very run down and remodeling.  

@Christopher Mooney NOI is Gross Receipts - Expenses...including Property Taxes/Interest/Insurance, etc.Income tax is based on the NOI less depreciation.

Industry still looks at STR as a bit riskier than LTR cause there's no lease.Lots of investors use bridge loans which are short term loan programs that include funding toward the acquisition plus funding toward the rehab. 

Moreover, other investment strategies are worth exploring if you are predominantly interested in high-yield cash flow; these include rent-by-the-room (which Josh and I are well-versed in), short-term rentals, and medium-term rentals.

The Mortgage would be around $3587/ month including insurance, taxes, Mortage insurance.

Also, if you are relying on the information someone shared with you to arrive at the conclusion presented in your first forum that’s a red flag.

And again, this is still not including any capex/repairs.  

While I cannot conclusively comment on the legitimacy of their operations, several red flags became apparent to us.

In California, diverse housing options are encouraged, including Accessory Dwelling Units (ADUs), reflecting a broader trend toward inclusivity.