Are they part of the pref equity position?

I also know finding a quadplex as a first property in Orange County isn’t going to be easy, but I’m open to hearing people’s thoughts.My goal isn’t to turn a profit right away—I know properties here might not have positive cash flow for a few years.

My questions are what books or other resources would you recommend to someone just getting started and also what is the best path to get started on in real estate for someone in my position?

If you have a RE attorney and mortgage broker then I am assuming you are using some type of joint venture or participation agreement to outline who gets paid what and who is in what position as you tranche the loan.

There are many reasons that adding a single ADU in southern CA is a less than ideal RE investment (i will post a list at the end) but the negative initial equity is a primary reason as the initial negative equity position consumes the initial cash flow and can take many years to recover.As for converting your home to a rental….

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, immediate cashflow and at the lower end of relative rent & value appreciation.

I would lean towards recommending that you pursue the deal - plus having the property remain in your family may be a net positive for you and your extended family regardless of the ultimate financial return. 

This will provide you two benefits:1) Help you better define the position, so you can hire a better matched person2) Make training the next person easier

(MLS/Realtor.com is propogated to more than 30 other websites.)David KrulacBigger Pockets Podcast #82  

As someone who used to provide housecleaning services on their own time, in addition to being an acquisition specialist, I'd say if she has written terms for that or a website or service page stating that to agree to pay her.