Your two biggest risks are underinsurance and liabililty.I had a cabin burn to the ground a few years ago in the Gatlinburg fire. 

The Fractional 1031 exchange is into a ~$20,000,000 ground-up construction multifamily deal.

Always happy to discuss the situation on the ground if you want to reach out, as I live, work, and invest here.

If your market is showing SF zoned comps for a ADU addition that match or exceed hands off cost of adding a ground up single ADU, your market would be rare if not unique for CA. 

The best money making opportunities in Florida are with the ground up. 

You can't make a filet mignon with ground chuck beef if that makes sense.

I have a great team in place on the ground that handles everything end to end for me.

What other boots on the ground can do inspections or meet with contractors?

-J run the numbers on both but you can also build a duplex. if you look at ground up construction we build for investors in areas like homestead and we are just starting to look at the entitlements to put 2-3 units on each infill lot they are going for around 100k right now.

This chart is approximately 12 months old, so the actual impact is already being felt on the ground here in Austin.