Taxes are about $40k and he's stressing about how to avoid paying.

Welcome to BP Shane and that's great to hear that you're open to another opportunity to build a backup plan and create long term wealth in real estate. 

Any C-class neighborhoods are more geared towards Section 8 and long-term renters.

How will this change in 2025 and effect business?

I'm licensed broker-associate and STR PM in CA. 

The OP should be expanded to include details on how one can determine the land value, as well as the various pros and cons of each method (e.g., lender appraisal, property tax assessment, insurance policy, etc.), and whether to use the highest or lowest value. 

@Amir GermanHouse hacking with an FHA loan is a smart move, especially in high-priced markets—low down payment, flexible credit requirements, and you can live in one unit while renting the others.

It’s mostly leased, and produces a solid NOI, so it wouldn’t require much operationally upfront.

Very low price and great location plus proximity to beach and demand for 3 bed 2 baths in area How did you find this deal and how did you negotiate it?

Issue them lease violations for each infraction and then notice to leave.