It is amazing how many times I have seen the cash flow represented as rent - PITI and to compound the issue they did not realize the ADU would increase their property tax.   

The allowable rent increase is not typically the big issue with rent control, the bigger issue is getting rid of poor tenants that pay their rent.

I recommend you do this annually to adjust for utility increases and other variables.

However, that will likely lead to increased turnover and increased vacancy time in between tenants.

My belief is that Praxis is the gold-standard.

/ What is the standard in your market?

Build your portfolio as your knowledge and wealth increase. 

I do not care what the source of the return is  Historically the highest return is via a value add and appreciation and is more so recently due to the recent rate increase versus earlier this century (before 2022).However, most new RE investors cannot handle extended periods of large negative cash flow.  

These rules have increased risks by making it difficult to get rid of poor tenants that pay their rent.

You fail to the systems in place, keep strong standards and the failure rate is light.