thanks for the guidance @Kaushik Sarkar Since it's development it will take longer to get to the exit. 3 years could be right depending on the market, if the project requires entitlements, how long it takes for permits, no major utility obstacles, etc.

You also mentioned meters, do you have to separate meters, get approval from the city and pull permits?

Good points.I'd add square, level, plumb - license, insurance, bond - using permits to follow codepointing out problems the owner doesn't realize they have that are serious. 

One key factor to confirm is whether the STR permit is transferable, as regulations can change.

The location is ideal, as it’s situated in a neighborhood that permits short-term rentals (STRs), making it a great investment opportunity.

So are you trying to avoid pulling permits? 

It is quite rural and it is much easier to get a permit for these sorts of things if you even need one.

Duplex have different zoning that may permit additional units.

Legal Implications & Ramifications : As an example; the iconic PCH homes in Malibu and many in the upper foothills might not permitted to build back, certainly not to the same extent or materials.

They just passed another conservation ordinance for rural, and if you want to even add an addition to your property within LG city limits you've got to cough up 10k for the general permit alone.