High probability that you’ll uncover an oh-$**** issue that will reduce or eliminate your projected profit. 

Private funding from a relative may provide flexible terms and reduced financial risk, but formal agreements are necessary, and interest paid is deductible for you but taxable for them.Traditional investment property loans offer stability and tax benefits like deductible interest and property taxes but require larger down payments.

It’s still a worthy strategy to force cash flow that’s rare to find in SoCal, especially if you can reduce the cost of construction by doing a conversion/using an ADU grant or even buying a property with an existing ADU In general, even if the ADU valuation matches your cost including grants, they are usually not worth it in southern CA in single family zones. 

Implementing water-saving initiatives is a smart way to reduce utility costs.

They based their loan on ALL of the properties, if you reduce their collateral value, you worsen the position that they did the underwriting on.

By accelerating your depreciation schedules, you reduce your taxable income which in turn increases your operating cash flow.

This reduces exit options and affects the value. 10) Small number of small units is the most expensive residential development there is.

This can help reduce risk and volatility by preventing overexposure to a single asset class. 1031 is only for investment property.7) Deprecation Schedule resets when the property is purchased in partnership with a DST.

They realize the due on sale clause could get exercised and believe the risk is justified by the reduced rate.

@Brandon MorganAn LLC will not reduce your taxes.