A real estate professional can use real estate losses to offset W-2 or other income, but you would need to meet both the:1.750-hour rule – You must spend at least 750 hours per year in real estate activities.2.50% rule – More than 50% of your working time must be spent on real estate.Since both of you have W-2 jobs, it might be difficult to meet these requirements unless one of you dedicates significant time to real estate.Another option could be buying multiple rental properties.

However, the City took a very strict interpretation of the code and ruled that the permits obtained by the prior owner (the seller) were expired.

Assuming you meet California code and a few other rules, granny flats can always be placed in a backyard in California.

I think the one DETACHED 2 bed 2 bath ADU that is being built off a converted garage + extension is perfectly OK and there is no question there.I think the grey area is around how you go about turning a 5 bed 3 bath existing living unit that is currently the downstairs of the main structure, into 2 2 bed 2 bath units, one of which is classified as a main unit and the other classified as a ATTACHED ADU.I have heard there are some rules disallowing converting existing living space into ADUs that may make this difficult.

If they have any rules about short-term vs. long-term rentals, you’ll want to know upfront to avoid headaches.Also, keep an eye on tax implications – renting while living there can open up some sweet deductions. :) Sounds like you're setting yourself up for success!

Hone your Excel skills by creating pro-formas to practice your 1% rule underwriting while never touring a single property 4.

three quote rule but also make sure they are familiar with that area and jurisdiction. 

While completing a Cost Seg study, they were very resistent to me using 6% and because of time-sensitivity, I decided to default to the "rule of thumb" method that you mentioned and used 80/20. 

Each area has different rules, so it's crucial to get this cleared up early.

This is 100% spot on.Absolutely leave a comment.If it violates Vrbo or Airbnb rules then ask to have the review removed.