The second year we only spent $25,000, and achieved our original goals.  

Best regards,Yaroslav @Yaroslav Shtogun what about a slight adjustment to the property line and executing a no build easement so that you're achieving the purpose of the setbacks?

Jaybe if you had a few units this can be achieved

Without the high leverage you reduce the top source of return in CA RE which is achieve via the appreciation on a high leverage property.  

Staying flexible and partnering with a skilled property manager or agent would be key to achieving long-term success.Good luck!

At tip to help achieve this: You will at somepoint, if you haven't already, be directed to propstream or propwire or the like to find motivated sellers.

My idea to achieve this is to convert the studio into a short-term rental.I’m trying to determine if I’m forcing this deal to work by relying on the short-term rental strategy or if it’s a reasonable approach given the numbers.

I applaud you for putting it out there but 1) maintenance/cap ex is far too low for a duplex 2) no PM. 3) vacancy at 1% will be challenging if achieving near market rent.

It will allow him/her to spread out the recognition of capital gain over time for tax purposes. 

@Nicholas Dilloncongratulations on your success so far. a few comments.1. is BRRRR still achievable in 2025?