I see the original post was made almost 3 years ago, so I’m definitely curious how your perspective might have evolved given the market’s ups and downs since then.

There are many reasons that adding a single ADU in southern CA is a less than ideal RE investment (i will post a list at the end) but the negative initial equity is a primary reason as the initial negative equity position consumes the initial cash flow and can take many years to recover.As for converting your home to a rental….

other than the constant warnings and warning posts I dont think you can expect BP to be the gate keeper for Guru class's  keep in mind some folks do succeed and the cost of a guru package to them was one of the best things they ever did. 

Please keep those posts in the Classifieds forum.Need a spreadsheet or form?

Do you mind sharing what your Craig's List post looks like?

Now, either I'm not posting in the right places of i.e Cragslist / BP etc or my ads aren't as well constructed as I think they would be to attract motivated sellers.

Benefits include immediate tax savings via bonus depreciation (60% in 2024), but depreciation recapture tax applies upon sale.This post does not create a CPA-Client relationship.

It was a subsequent post in response to my question that OP made clear it was because the state required deposits to be held separate.  

Quote from @Natalia Perlova: Quote from @Marcus Auerbach: Agree with the last two posts.

Extremely helpful and constructive post.