Only difference is that California I have 1.5% or $1500 min vs every state as Joe mentioned is the same.

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. 

Hey @Keenan Patton,This deal looks solid with a projected $60K profit, $435K ARV, and a $13K assignment fee in Northern California.

A bit about me: I’m a real estate investor (my husband and I own a 4plex in Oakland, CA), and SBA loan broker.

I think it's ridiculous to pay a tenant to leave, but it makes sense in places like California.

I am going to assume that you are doing this close to home in the bay area of CA.

My portfolio is heavily weighted towards real estate, largely because of California appreciation.

I currently live in San Jose, CA. 

For example, in California, we have earthquake and foundational issues.

We just completed 6-unit one bed one bath apartment in midtown Sacramento, CA As we are considering doing MTR, your feedback on how to move forward with this plan is appreciated