In CA you can rent ADUs but can only rent JADUs as a separate unit if the owner lives on the property.  

@Chris Kay it depends what level of renovation you are doing!

I’ve seen folks pivot their plans quickly if they discover one city has friendier permit processes than another.And yeah, the Phoenix area has some really down to earth investor meetups, from what I’ve heard, that can help you level up fast.What aspect of the business are you most excited to tackle first.. managing construction, or scouting out those under the radar leads?

We have 60 rentals12 air bb units, Ohio  and Fla. 15-20  flips and wholesales, between buy and sell close at any point. 

One quick point, you can create sub-virtual accounts for each unit / room by property which I imagine would be helpful if you're renting by the room for your third property.  

This conversion will begin at the end of the month.I am just sharing the above to give context to my level of experience with this type of investment.I look forward to hearing from you all.

(This well could be a generational thing and whatever the comfort level of the guest is.)

5unit is probably manageable.  20 unit is work I would think. 

I agree with John, we are seeing renovation costs of $150k- $200k for a basement unit and $250k + for a coach house. 

I am considering a 12 unit multifamily property in my home market of Harrisburg, PA.