Historically, San Diego appreciation has far out performed the return on better cash flow locales. 

The gold standard in investing is to outperform the market.  

, credit scores are great, and they have big fat down payments (which could hint at their "real" income that you won't see on tax returns).All the data that I've read says that non-QM is outperforming FHA.

In terms of which to go with I think some pros for condos is lower cost of capital as a barrier to entry, lower cost means lower risk on your first deal, most condos include heat and hot water with the fee and that results in a less complex assignment to you as the property manager (assuming you will manage your own), I think condos fell hard and fast in the crisis and are an asset that may outperform early in this recovery (my speculation).Cons - condo fees destroy cash flow in my opinion, when I run numbers on condos those fees just kill the returns, HOAs and condo associations generally stink, there are adjustments where they can hit you up out of the blue for stuff like a new roof, that's a risk that could kill years of earnings out of nowhere.

Throughout the country, these sophisticated value adds abound but knowing about them and recognizing them is the challenge  There are many RE investments that should out perform most ADU additions.

We can model out performance closer to actual versus sf, and mf.2. 

If the majority of them are sports/college centered, then you'll have to outperform them or you'll just be more noise.

Typically the RE I purchase I am projecting >20% return annually for at least the initial 5 years and fortunately most of my RE has out performed our projections.Each investor has to determine their own acceptable projected return but for us a few percent above the historical S&P return is not worth the effort/hastle.

Max leverage outperforms all cash by a factor of two (14.81% versus 7.77%) on income.

We're still getting numbers on how it rents for all the seasons (we live in it part time) but it seems to out-perform other rentals in our area.