House Hack in Very Tenant-Friendly Los Angeles Area or Rent To Avoid Risks

[Tom T.]

I read a lot about why tenant-friendly places can be so bad e.g., strict rent control, just-cause evictions, months long eviction process, relocation fees, etc. It has me a bit hesitant to house hack there with a multi-family where I could have up to three separate tenants. That leads me to contemplate renting for myself (and invest elsewhere), but that is also a bad idea because my largest expense is going into another landlord's pocket, and I don't benefit from all the wealth makers of owning my primary residence.

One possible solution I thought of is purchasing a large single family home and doing short-term rentals for each room with Airbnb. This should minimize the risks of any eviction chance, especially if stays are less than 30 days. It will require more time, but will make me focus on developing a good team & processes (eg cleaner/maintenance). However, there is a strong correlation between tenant-friendly and more red tape and regulations on short-term rentals. So I will need to jump through some licensing hurdles as well and pay additional fees/tax.

What would you do in this situation? A multi-family where it can be more passive (and I can even Airbnb out part or all of my owner-occupied unit eg when traveling). Or, a SFH (stronger demand, easier to sell) and go all in on STR with a more active approach?

I also noticed there's some variations between LA city, LA county, Orange County, etc. Let me know if people have thoughts on optimizing there too.