The other way is using the short term rental loophole but you have to be the person spending the most time in managing the asset which may not be worth it for you. 

I have a small 3 unit that I manage myself.

It can absolutely be done in California, and although California makes it very difficult to manage properties due to tenant-friendly laws, if you know what you're doing or have a great property manager, California is an excellent place to invest due to high appreciation.

They are entities, not individuals and their asset managers handle thousands or hundreds of these at a time.

One way to look at is that your paying a property management fee of 8-10% to do absolutely nothing but just hope that this is a long term hold because you might have to pay these again to buy something else....correct me if I am wrong.

Can anyone recommend a good property management software solution that tracks seller financed loans (i.e. properties that we have sold with seller financing), along with tracking the rentals?

Decided I liked the property management business the best, moved to AZ in 2011, gradually sold all of my rentals in Minnesota, flipped a couple more in Mesa while getting my Real Estate license to do property management.

Realtors, property managers, contractors, and legal advisors are invaluable.6.

Realtors, property managers, contractors, and legal advisors are invaluable.6.

Realtors, property managers, contractors, and legal advisors are invaluable.6.