RE isn't for everyone, but from my experiences most people that quit do so because they didn't make the kind of money they'd hoped for in the short-term, even though there isn't anything short-term about RE. 

However, for a short-term fix'n'flip, it might be worth it, personally i'd be nervous on a longer term investment right now.

Give a very short window for them to leave.

I'm looking to do a 1031 exchange on my owner occupied duplex in Los Angeles, where the upper unit was my personal residence for more than three years and the lower unit has been used as a long term and short term rental.

Here is a short story / background: I own an owner-occupied Duplex Rental Property.

Ideally they're interested in a small turn key opportunity that would allow them to operate a short term rental business while also utilizing the space personally for vacation - great idea right?!

I am not looking for short term tenants with low salaries.Another thing to keep in mind is the tax implications of selling your rental property.

Sweat equity can go a long way when funds are short.

That's my long-term goal, my short-term goal is to acquire 3 properties in the next 2 years, 2 single family houses, and 1 multi-family property. 

So you could start out that way and then maybe not need one.Or you could short sale it, etc.Rehab would be the last ditch effort I would ever consider.Location, condition, etc are all known before you ever buy, so it not like you HAVE to buy it or will get stuck with it.Do your DD, REAL DD, not this electronic nonsense and youll probably be okAnd on $5k, a 15% return is only $750...