@Kenneth Hynes I have done 100s and 100s and 100s of rehab for rentals, save the floors for when its time to sell to a new owner that may want to live in one of the units.

However when "House Hacking" you live in the property so you get to use "owner occupied" financing.

There are LOTS of legal restrictions in California that you will need to be aware of if you are buying properties from owner occupants who are in foreclosure.Here is some reading to get you started (I have no affiliation with the company in the link): https://support.propertyradar.com/hc/en-us/article...Scott Williams

I actually found this deal off market by emailing the owner.

I know that down payment doesn't really add up to me because even the 5bd/3bth new constructions are going for ~615k, which even if he was putting 20% down as an owner occupant, that'd be something like $123k for a down payment...He wants a cash sale of the house to make this seamless.

Owner is saying expenses are about $10,000 per year.

Small businesses allow more discretion because the owner is a hands-on decision maker in the day to day operation.

Personally, I feel as though it was very lucrative back in the day, but it is much more difficult now to see a great return on a STR post-covid due to a saturation of people wanting to become STR owners, municipality restrictions, etc. 

Opinoins aside..they ultimately cost A LOT and as of recently hadn't quite delivered as expected for any property owners.

If it is owner occupied then hard money lending will not work as they will not touch owner occupied then the route would try and be friends and family.