I have been looking into tax deed real estate particularly in California; I live in Los Angeles.What has been people's experience with dealing with the dwellers/owners/renters of these tax deed properties?

The rest people need to make sure the numbers are good.

Normally I tell people to start small.  

Ours has been full with people moving to the area looking to buy.

Real estate has so many tax benefits and credits available, that I always tell people it's crucial to have a CPA that's extremely knowledgeable in this area.

Unless I’m wrong.I thought maybe to buy apartment in 400K range in Miami in some tower and make airbnb from this, I know there is huge competition but a lot of people always coming there for vacation what is your thoughts ? 

Don't worry about what people say, but with the numbers you put out, they would be right.

You can also reach out to people on biggerpockets who are doing what you want to do.The more people you talk to, the more you'll learn!

I would list them as Rent to Own (more people understand that language then lease option).

Can you start a fund where people provide you capital and in return you guarantee them a yearly APR in return and provide monthly interest payments.