Texas is difficult as a Californian due to the extremely high Texas property tax, coupled by the CA state income tax.

Income tax is of course 0%.

He has talked up the tax benefits that I could take advantage of by making such an investment. 

Pro tips: Boost credit (aim for 670+), get pre-approved, find a savvy lender, and get creative—think home equity lines or teaming up with an investor.

Rental arbitrage may not be a bad idea for now in certain states but a lot of states are tightening their grips around Airbnb which can lead to laws and regulations changing overnight and you’d be left in a tight spot depending on the terms of the lease.

It all depends on what strategy you want to follow.

But depending on your market and the property location and quality there might be more money in flips—this is a location and market dependent question.

What's a fair amount, well that depends on what this is actually costing you in terms of actual expenses plus the time and hassle involved.

I offer a 20-30% discount depending on the property, time of year (sometimes a long term guest just isn’t worth the amount of money you can lose), and length of stay. 2.

I suppose it would depend on the building code if that was offered or not, or had to be hard wired in.