And as far as legal—an attorney becomes essential once you're ready to finalize terms with either an HML or private lender to make sure everything’s secure.Hope this helps!

You can buy my book, the book from Brandon in the BP bookstore, or Every Landlord's Legal Guide by NOLO. 

In 30+ years we've been sued 1x (legal blackmail over a tenant's drunken trip/fall) which the insurance company settled for $1,500.00).We've been using some privacy tactics to keep our names off the county recorder and the target off our backs.Further, we review our insurance coverage and premium annually, just to keep on top of any changes.As with all insurance, it seems to be a waste of money... until you NEED it!

@Tim Holt Come February, it's legal to create an ADU by-right on any single family property in the entire state.

I have done extensive research in the risks, how to structure such deals to mitigate those risks as effectively as possible, and legal considerations of each strategy. 

I recommend legal advice from an attorney.

Do the legal Tenant laws of eviction still fall under a room rental?

As for the legalities of setting up an LLC to protect you and your partners, I would consult with an attorney for best judgement. 

Do not rely on it for legal advice.

We also disallow Level 1 sex offenders to the extent we are legally allowed to.