They are not in the business of owning property.

For me, I knew I wanted to work on building out a listing business for luxury homes so I got to work cold calling luxury home owners and building my brand as a luxury agent.

I'm a full time IT specialist AND have my own home inspection business in Southern CO.

Best advice I can offer:  don't mix business with friendship.

Are you running a business? 

I have successfully used VAs in my on-market and off-market business, but you will fire about 90 percent of them over time.

Making the transition from an employee to a business owner is very hard work but rewarding in the long run.  

Everyone involved personally guarantees the commercial loan.

I do agree with you that investors must absolutely consult with their legal and tax advisors before entering into any of these tax-deferral strategies to ensure they understand the potential risks involved, including the risk of being disallowed by the California FTB.  

But I would certainly never discourage anyone from investing in rentals if they are truly passionate about building a side hustle business.