Renters are not stable enough to know what they'll be doing in two years and most of them will break a multi-year lease.Study the market so you know what your home is worth, then rent it at that price or very close to it.

My tenants security deposit is around $2600, not even close to covering the cost of repairs.I want to ask how do I handle a security reconciliation process myself?

@Enrique LagunaI have a client that has done really well with STR in the short north close to high st.

Generally most lenders need a 660 or maybe a 680 FICO score and enough reserves to cover the downpayment, closing and some reserves

I think there are places in California where the mountains and the beach are close to each other so you could have a primary home, and 2 second homes one on the beach and one in the mountains. 

Typically anything that needs to be done to the property will be noted on the appraisal, so it's odd if nothing was mentioned until the last minute....it will show that the value is "subject to _______________________" and this is where they will add things that need to be done before closing.

a good deal for a SFH flip would be the buyer being ALL IN at absolute max 80% of the ARV (including the PP, renovations, assignment fee, closing costs), but a lot of investors would say it has to be max 75%, 70%, maybe even 65%. that said, shoot for 65%, and know your renovation costs. i've used $65/sqft for a gut reno, and until proven otherwise i'm assuming it's a gut job, BUT that PPSF is not always accurate, sometimes there are unique issues with the property that would drive that number way up. it gives you a place to start, though. 

I would stay close to turn-key for your first oos investment.

The process can be started about a month prior planning for a 30 day close. 

Even if you live in a Home or one of the Units you can still set the address or other units up on your "Schedule E" and claim the standard deductions.To be totally compliant I would tell you to refinance and transition the property into an Investment property and close it in an LLC.