I do have the text message conversation where the landlord agreed to the reduction in exchange of the two bedrooms.

query=garage#sear...If you can rent a 2 garage at $450 without spending ~$150k for a garage ADU conversion, no work/risk of the ADU conversion, the lower maintenance/capex, easier eviction, no rent control, less tenant interaction, it will not convert your SFR to rent control, etc, it seems superior to the garage ADU conversion.  

Conversely, if one side of the house sits on unconsolidated fill or on silt, it would settle or shift over time - once again, causing cracking.

I went through the academy and had a great experience personally.Everything is constantly updated, community very active, and most importantly, they actually coach you 1:1 and help you make important decisions.Michael is a super transparent dude, shows us all of his numbers, and after an hour conversation with him, you can tell he’s actually an expert with STR’s.

Stanley - I would suggest that you go have 3-5 conversations with lenders and understand how much they are willing to lend to you given your financial situation.

If they are legit and you don’t have any other offers then I’d have the conversation with them but I’d want a higher than normal down payment (ideally 50% or at least more than the normal 20%), a higher than normal interest rate (at least a point above the prevailing rate so like 9-10% right now, but you can structure it as interest-only payments so their monthly payment is still lower than conventional), amortized over 30 but with a balloon in 3-5 years, something like that.

If you're pulling a permit already for plumbing changes, just get the permit for the room conversions at the same time.

Advice on Layout/Design: For those who have added ADUs, do you recommend standalone units, garage conversions, or a combination of both?

Cheap hands off legal ADU garage conversions in coastal So Cal start at ~$120k (if all goes well).  

At 1031 Capital Solutions, we have daily conversations with landlords contemplating selling their rental properties, many of which are single-family homes or small multi-unit residences.