.- Understand the role of trust. 

Rent control in the bay area can be extreme as many areas have rent control in excess of the state mandated rent controlIn general experience RE investors are not choosing to add a single ADU in single family zoned areas.  

I would stay long enough for the 2 years so you quaify nothing is going to happen in the next year or so.. that tax free money is the best thing we have going in the US in my mind. then U could buy some very safe first trust deeds and make 4 to 6K a month NET NET NET without any of the TTTs..

And Jerry is a Wyoming attorney, so you can trust his legal advice! 

If you go this route, consider hiring a trusted property manager local to the area who knows the market well.I have personally owned and managed a multifamily property in Illinois and after selling it I said I would never invest in that state again.

It's all about building trust and relationships, and in the long run, that will pay off way more than just trying to squezze a specific deal.

Hey Rachel,I can't help you because of the location but you're going to have an extremely tough time finding insurance for that type of risk. 

For a beginning investor, I'd recommend more turnkey properties to get your feet wet while you build trust in your boots on the ground.

You’ll want to invest in areas that have tenant interest but also aren't on the extreme end of neighborhood quality—this means avoiding the very toughest spots, where turnover can be high and managing tenants can be difficult.

Hey Santosh,As of right now you're extremely exposed regarding insurance and I'm going to assume legally as well.If the home isn't registered as a legal multi-family with the town that's something you'll have to correct ASAP and make sure the home is up to code.Insurance wise as soon as they find out what you're doing they'll cancel you as the risk has changed from a single family owner occupied home to a multi family owner occupied home.