I am seeing a trend in CA that ADU construction is more cost effective (per unit) than buying on the market by a long shot.

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Here's an article with FAQs including the cost of a study.

My total cost is 40k, can resell at around $130.

Utilities cost $150 per month.

Hi Chris, As financing costs will be a big factor in determining profitability, you should be asking HMLs for proposals to fund. 

This also leaves me with $3,750 stuck in the deal (not including financing and closing costs, which could easily add another $20,000).In total, if I had to include closing costs and financing costs, I’d have about $23,000 (if not more) tied up in the deal and lose close to $700/month before accounting for expenses.

It's probably best to have them pay out of pocket for a smaller cost like this.

-save $1k+ in taxes and fees yearly-can use the savings to get more insurance and a higher liability than the value of house. for flipping houses in California does anyone just put into sole proprietor own name and just use the $1k+ in savings for LLC costs into Insurance or use for savingor am I just being too risky. 

I am just curious if you are utilizing cost segregation strategies for your investments?