You cannot treat tenants differently based on any protected class in your jurisdiction (California has protected class in addition to the federal protected classes).no need to treat marginal tenants the same as good tenants.    

Additionally, the scalability of co-living models allows for diversification across markets, mitigating risks and promising sustainable growth. 

Additional info: We have a pretty specific game plan in place.

This apartment is not producing any cash flow; rather I am paying additional $400-$500(including HOA and mortgage payment) from my pocket every month for last one year.

Those areas tend to have strong rental demand, and it sounds like you positioned the property perfectly before the growth happened.The exit strategy was also impressive—rolling the profits into a new property through a 1031 exchange and turning it into a short-term rental with an additional studio unit is a great way to keep the momentum going while increasing cash flow.Thanks for sharing the details of the deal and the lessons learned, especially about doing deeper due diligence on existing tenants.

Majority of the houses are old and require frequent repairs in addition to a poor tenant base that can't pay on time and don't care about their credit.

So we either do an additional test  for $600~, or we have to evict our CMHA section 8 tenants. 

In addition to @Janice Carters comments, specify "septic safe,surfactant-free detergent."

For rentals, the building usually drives the income — not the land size.A larger lot can have some upsides like future expansion potential, more privacy for tenants, or space for additional parking or an ADU if zoning allows.

Additional dwelling unit build company near Olive Branch MS