Never thought about having them sign a completely new lease.

So I'm under renovations for my first property and I used a conventional purchase and renovation loan, not knowing how tedious the draw process would be for me and my GC, but saw it as the most convenient way to fund the renovations.Doing our best to communicate with each other to ensure a smooth draw (fill out work completed form, get inspector out, review from both HUD Consultant and lender, send for signatures, 3-5 days of processing).

Really hate to give up a good amount of the proceeds to taxes and worst yet, have to pay off the BK debt in full with only a few months left before completion.

Typically Investors complete a 1031 exchange out of active ownership/management into a DST because they are looking to defer capital gains and stay in real estate to build their wealth but are tired dealing with tenants, trash and toilets. 

The process was straightforward, rates and terms were flexible, and I completed my home renovations without any issues

Hey @Juan Acevedo First off i do not confuse fact with opinion, If you have a good system and are good at your craft you can definatly make money in los angeles flipping and or wholesaling, never be afraid of competition you should embrace that and create a system to be part of that competition thats what makes this all so fun, not everyone can do it, me personally i love the La market as soon as i get a house completed i have multiple offers in the first couple weeks and i can care less about the competition, i focus on my structure that works for me, If you can make it in La you will find many other areas easy, I'm not far from you if you like you can come visit one of my flips and gain a little experience, i have a couple SFR's i purchased in the La area I'm almost complete with the rehab, good luck to you.

Just feels like none of the explanations I hear completely add up - wondering if there's something bigger at play.

This post sounds like you are giving legal / financial advise that you do not have the credentials to give.  

Do you have every potential renter complete this or only select one renter based off the pre-screening process?

@Devanand Ramachandran It sounds like you should hire a local property management company that specializes in the area and property type.