When we lived in Orange County, CA, the only place to make good returns was out of state.

Osceola County is easier than Orange for short term.https://orlando-rising.com/osc...https://www.airbnb.com/help/ar...

Real estate and stocks are apples and oranges.

Leveraging the property with a long term mortgage allows the investorTake maximum cash out using stable fundsAllows the investor to take advantage of the lowest interest rates we've seen in generations (probably redundant to the first one, but the leg up investors have when using loan products that are both stable and have historically low interest rates can't be stressed enough)HELOC's on investor properties are much more difficult to get than a cash out refinanceThere are myriad loan products to use for long term wealth; conventional, DSCR and even interest onlyMany people recommend using a HELOC for their first investment property because most investors (yes, a sweeping generality) own their primary residence and it's fairly easy to leverage that property with a HELOC. 

I've lived in SoCal my whole life (43 years) and currently own a townhome smack in the middle of Orange County.

My spouse and I have used a similar strategy to BRRR and hold rentals and you being a contractor you have a leg up already.So, you already have discounted properties in the pipeline.

They were really positive about the house.The only red flag for me is the husband is one of those type of guys who tries to hold eye contact too long, exaggerated wide-leg standing posture, Type-A type.He seemed nice, but definitely gave off vibes like he was attempting to gain control and be in charge.

Yes, we have to put some leg work in when we need to fill a unit - but how often is that... once every year or two per property?  

Hi @Shane ForrestIf I understand your question correctly, you are speaking apples and oranges.

They're pros in the field and their wholesaling leg adds a few $$ to the pot (mainly from my purchases!).