It can and usually does produce better cash flow than whole unit rentals but it requires more work than whole unit rentals.  

This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 4) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 5) this is related to the value added by the ADU, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

CA produces probably over half of all veggies and such in the entire US and its all Hispanic .

You find a property that 'SEEMS' to be a bad deal and 'seems' to produce no cashflow BUT upon a little digging you find that indeed it is a great investment because the rents are below market -- hence, buying below market value.

Didn’t need the equity for a down payment of new house and it’s in a great area that could produce significant cash flow.

For instance, while it can bolster initial cash flow by reducing tax liability, it could diminish deductions in subsequent years (when the property might produce better cashflow), impacting overall tax footprint, so you need to take into account all that in the context of your short term and long term tax strategy (e.g. if you plan on selling soon, at which time the depreciation gets recovered, or not and planning to hold for a long term/forever/1031, buying more later and creating more depreciation to offset cashflow or not, etc.).The alternative is a do-it-yourself (DIY) or survey option, which costs around $400 to $500 per property (I can do my CSS report in 10min, once I have all the data needed).

I believe there is a discount if you can produce the old title policy. 

And two or three financial publications then produce articles utilizing this unsubstantiated patently ridiculous claim as fact.

Now in-person inspections also have your back as the investor, having someone come out and check the quality of work your contractor is producing is good to know.

I was wondering if there are still some areas in the Austin Metro that can produce cash flow?