A lot of our housing stock here has finished basements or in-law suites, so with something like that you can generate significant rental income for an inexpensive conversion. 

It is usually difficult to take money against it from the bank, it might not be a 1:1 value add - meaning if you invest 100k into an adu it might not raise your value by 100kThat being said, it can be pretty lucrative especially in expensive and sunny CA - since building lots are no where to be found and existing real estate returns are very poor.My partner builds these units.

.✅ Denver - April - $610,200✅ Westminster - April - $570,000✅ Arvada - June - $655,000✅ Thornton - June - $560,000✅ Lakewood - June - $605,000✅ Englewood - July - $600,000✅ Morrison - June - $968,000✅ Conifer - January - $872,500✅ Evergreen - April - $1,200,000✅ Golden - May - $1,025,000✅ Littleton - April - $680,500✅ Parker - July - $715,000Certainly these months/time frames can change in 2025 depending on mortgage rates, inventory in your city, etc.But, if all remained constant, this gives you a ballpark idea of time of year to net the most money

on a recent podcast Dave and Henry Washington talked about 10-15 years being a potential timeframe. 

Follow up with an inspection with the timeframe stated in the notice. 

Hello, I am seeking advice or creative ideas to move closer to the goal of owning a home in San Diego county without the obvious solution of selling off my small rental portfolio. I am by no means a savvy investor so ...

But let’s say you sold 3 within the 1031 timeframe and you also found a property or 2 or 3 that are equal to or above your basis.  

I think initially it makes sense to find properties that already have finished basements, in-law suites, etc. as converting those spaces to ADUs will be inexpensive and create a significant amount of rental income ($2,000/month+ in most areas close to the city).

The 2008 timeframe was different and in situations a lot harder than now, but this market will shape a lot of investors that found their new market, product to focus on, and/or to dive in deeper when times get tough.   

However I do have a few other ideas but I would need to know a bit more about your situation, timeframe, overall financial objectives.