In CA safety has become a huge issue in many ciites.

No amount of "should work this way" seems to work for very long here (at least in my experience), as every single flip will enjoy all kinds of surprises and contractor related issues.

Please post any further progress you make in defining any advantages or issues you may discover. 

it pains me to handle tenant issues when im trying to run my other family business (real estate investing is my side business)...of the 5 properties, 4 are rented. 

Don't tell the IRS.I think the real issue on larger legitimately run hotels/motels may have to do with the other metrics involved such as ROI and IRR.

Go and assess the issue, establish the number of cats present, and find out the areas that are the source of the odor.

With SF illegally evicting non-problem tenants and non-documented property issues  (police reports, Lease violations or written notice to residents to Cure or Quit etc..). 

This way you don't have to worry about any tax issues related to UBIT.

Some other cities are highly troubled due to corruption or long rooted issues (Waterbury), and some of those are further along to improving (Bridgeport).  

I did notice that the post said most portfolio loans have a higher interest rate typically than what you'd get with a conventional lender, and that they are usually shorter in term or have a balloon payment.Based on my personal situation, I shouldn't have much of an issue getting conventional financing for the first few properties.