You need to be careful with prequalifying people these days as various cities and states have laws that can restrict that. 

Use some for buy and hold (I personally would prefer apartments rather than buying a few single family homes) and some for lending/trust deed investing.In either category, you must know what you are doing, know how to vet the investment, how to vet the sponsor (if investing in a larger fund of some sort), the laws and regulations on the lending side, how to investigate which areas to invest in buy and hold and notes/trust deeds for that matter.So as you have already said several times, lots to think about . . . 

We also are very verse on the Property Code Laws of what legally we must do and what is just good business.So @Ian McClure to answer your question, it would depend on how the new tenant was on boarded and what kind of business the owner runs concerning his property

Talk to your agent to get a little more information about this.I agree that if the unit is not permitted to be rented on its own, then it's probably best that you don't rent on any platform illegally.However, if you are able to allow access to the main part of the house, you may be able to rent the space as a room in a home depending on local laws and ordinances.

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

I just got off the phone with a law firm doing the foreclosure legal work for a bank.

(Costing you more than hiring a PM.) or charge too little (Costing you more than hiring a PM.)2) You are NOT going to know all the landlord laws.

Russ has a lot of creative solutions and uses established case law to work in ways that some of the more "cut & dry" intermediaries do not.

Hey Sharad, I would connect with an attorney familiar with the laws regarding OOS entities in the market you're looking to invest in.I'd be glad to refer you.

The new property tax law should help significantly.