For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets.

There's also the fact that during Covid, Airbnb, going against hosts' cancellation policies, cancelled bookings and refunded any guest who said they had Covid, or their grandmother had Covid so they'd been exposed, or any other ridiculous excuse. 

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Or roughly 3X the entire income tax collected by CA last year.

There will likely be a partnership return required where you flipped a house with a partner and lost $120,000.If you sold the other property within the same partnership, it will also be reported on that partnership return.The net result to you is that you will receive a K-1 showing your income / loss which you then use to report on your individual return.If you made no money within the same year, you likely pay no additional taxes / get no additional refund.Best of luck.

If your goal is passive income, it's not going to be in New Jersey when you factor in cost to purchase, management costs, and rent to price ratio, but what you can get is steady appreciation.

Our main carrier policy converts to vacant dwelling policy at completion for duration of term and can be renewed on case by case basis if unfinished or unsold.  

Some people will say, "Take out a quality Insurance Policy and you will be protected."

However, when you combine the income from both the units, I think you will end up with more income after a year or two than with a SFH renting by the room.  

Also make sure to have owners add you to their property insurance policies, so you have liability protection.