And your net worth will thank you.If you still want to go ahead, you'd be better off buying a house than an apartment because, while the value of the building itself will go to 0, you'll still have the value of the land, bearing in mind that the land might actually lose value too given the depopulation and the yen depreciation.Sorry if I'm pooping a party but make sure you understand what you're getting into (which you're already doing by asking the forum) and then make the decision that's right for you according to your objectives.

I understand the crime concerns, but why do you think traditional financing is risky?

I'm going off the understanding that you still need to spend 500+ hours in the business to achieve material participation (please correct me if I'm wrong). 

Ensure you have a solid understanding of the renovation costs and timeline.- **BRRRR (Buy, Rehab, Rent, Refinance, Repeat):** This strategy can be lucrative, but it requires careful planning and execution.

From my understanding, I need a Proof of Funds in order to get under contract. 

Welcome to BP.My biggest piece of advice is to understand risk premiums in real estate.

From what I understand, a 1031 exchange doesnt apply in this case, and so I will have to pay short term capital gains on the appreciation ?

What I am trying to understand is after Coachella ends, would it still have the strong recurring demand/occupancy for STRs?

Something will come up that you do not understand or do not have to knowledge to deal with.

I understand there's potential variation, but from observation, whats being observed?