(Ask me how I learned that one)With a note/mortgage you have zero liability and it's much easier to sell the note for cash, should you want to in the future, but you give up control/ownership. 

Rent control is another strong factor as many cities have super strict rent control for duplexes and up with Oakland and San Francisco leading the way.

The language on the IRS site is not controlling anything and is usually confusing and sometimes outright wrong. 

They control the votes and what and how things get done. 

California Prohibit State Limitations on Local Rent Control Initiative (2024).

I built my ADU in 2020 before SB9 passed, which put my original house under rent control because it was built pre-1978(2 units on the same lot triggers rent control if one was built pre-1978).

Whoever has the deals, controls the transaction.

I totally lose control of my funds.I've been liquating my portfolio. 

This way y'all maintain control as GPs and can buy/invest as much of the LP portion as you want or even take 15-20% as your fee for syndicating the deal.

While you can’t completely control who applies to live in your properties, you most definitely can find areas that are popular with students, young professionals, families, etc. 4) just as important as finding the property, you need to have an exit strategy in mind for the property.