There is no one-size-fits-all for markets and salespeople.

But assuming its a stable but growing market, every dollar of Net Operating Income you are able to force is explosive to the underlying asset value.Under both of these scenarios, you do not need to syndicate as long as you don't go too big on the deal size. 

Step1 "Capacity":Countthe units and sizes in that market.

A nice but rental quality unit gets 1500-1650 regularly in that area depending on the size and finishes.

This might make sense depending on size of rentals and # of LLCs that are required to file - need more info to help.  

Assuming this scenario is true, I cannot see a scenario where coastal RE near Los Angeles does not have over sized appreciation.   2nd homes is not going to make a significant dent in this increased demand. best wishes

The point being: it can be just about any size you want.  

I can expand it if i desire, but it minimizes the size of the post.

This size fee is a red flag to lenders, they look for 1% so that is what they put on the closing statement.

If you compare ADU addition with any larger development effort , either in size of unit or number of units, the return is greater because building single small unit is the most expensive residential development.