Based on what I have heard there are two tests we have to pass in order to be qualified as a contractor.

I'm based in Riverside county, CA and am looking to invest out in Georgia.

These are generally 12-24 month interest only loans that borrowers will generally pay back by selling or flipping to long term financing like DSCR loans.More on DSCR loans:DSCR loans won't use your income to underwrite the loan.DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.Here's a bit more in detail about how rates are calculated for DSCR loans:1.

So increase NOI, then you can back into a rough number on what your loan proceeds will be based on your forecast debt service upon refi.

I am based in Houston TX.  

Of course the proof is in the actual investments and numbers, but this assertion seems unlikely based on the value-add upside normal syndications can provide which DSTs can’t.

If you are looking for financing, I would make sure you can qualify based on long-term rent (one lease), and the property is not currently operated as a rent-by-the-room rental. 

But I’m SoCal based and have thought about investing in Temecula.

But you have many options based on what you've provided here.

It looks to be a true 50/50 split based on square footage, so eventually when you go to sell you will be taking 1/2 of the property and applying the federal tax exclusion under Section 121 and the other half will be treated as a capital asset subject to capital gains.