2nd Dwelling Units (Guest Houses), an Investment Strategy?

[Alec B Calzada]

Hi there!

My name is Alec Calzada. I'm a draftsman and project manager working with an architectural services company in Southern California. I'm on here because I personally want to begin investing in real estate, but I'm also a construction industry professional on the planning and design side and have a lot of experience and knowledge that I'm willing to share with the community. I'm hopeful that I can provide some valuable information while learning from everyone as well. To get started though, I'd like to know if anyone has pursued the 2nd Dwelling Units (Guest Houses or Granny Flats) as a real estate investment strategy and what the potential pros and cons of that strategy might be.

I know that the recent California Senate Bill (SB 1069) has actually made building a guest house on a SFR property more accessible (in California only of course). I'm wondering if anyone has seen success in this sort of investment and what potential down-sides there might be with building a 2nd unit on your properties.