@Sharon Pumpelly, I think this is a very good question.

I have a tenant who moved into my rental in California in Feb this year.

This approach allows you to manage the property closely, benefit from homeowner loan terms, and potentially increase its value with improvements before renting it out.As you transition the townhouse to a rental, ensure the rent covers all expenses and provides a profit.

They're a safer play in this market.

This is the biggest mistake we have ever made.

What made you interested in investing in this type of deal?

I say this all the time and it's echoed above.The best CRM is the one that you will use.

Or is there a more efficient method to do this?

Also, check out this article for more details: https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...

I imagine this has something to do with taxation, so I would advise a CPA.