I am probably going to turn it into a podcast studio and guest house, but it's perfect to live in while I renovate.Northern CA is way behind Southern CA in the ADU acceptance and feasibility I think so there isn't that extra back scale that there is in say, San Diego, where people are building four units behind their house.

The rental is currently cash negative and our thought is by converting the unused storage unit it would bring cash flow into the positive.

Looks like they are working to find a balance of feasibility on validating that claim of 2 days and enforceability.  

In my case, I have residential rentals in one LLC, commercial properties in another, self storage in a third, and my real estate company operates in a fourth.

The typical clients that seek out cost segregation studies include:Real estate companies that buy and sell multiple properties each year.Individuals with a portfolio containing investment properties including apartment buildings, multi-family homes and even single residences.Franchise owners with properties that are similar to one another such as assisted living facilities, storage facilities and golf courses.Business owners of hotels, food facilities, shopping centers, restaurants or manufacturing plants.It depends on the type of property, but generally 15-45% of the building’s costs can be classified into assets with a shorter life.

As preivously stated above, I have a small storage space (around 200 sqft) that can be converted into an ADU (already have approved plans from LADBS) and am meeting with various contractors and teams.

In that case, this would need to be an all-cash purchase and could be sold along with any liens, violations, or judgments against the property to be the responsibility of the purchaser.To your point, this is difficult but feasible.

Does NOT mean you will NOT cashflow right away but most of the time in San Diego you are buying to ADD value, raise rents and finding other opportunities to raise your cashflow like; add AC, laundry, storage, etc. 

The ones I manage total to 20 bedrooms.These rooms rent for between $125 to $225 per week depending on room size and amenities in the room (beyond basic amenities may include: Desk, Tv, private entry, tenant controlled AC, additional storage).This month after padsplit takes their 14.25% cut of the revenue I am recieving, from the units I own, $15,230 from 3 homes.

Discuss this with the lender before proceeding.Partnership or Joint Venture:Structure the purchase with a partner or entity while maintaining the assumption in your name.This allows you to benefit from the entity's structure while complying with VA loan rules.Entity-Owned Financing:If assuming the VA loan isn’t feasible, explore refinancing into a non-VA loan owned by your entity after the property is acquired.4.