When we built up the triplex, we set it up so that each of the 11 rooms can be rented out individually (all BR, except 2, have their own bathroom behind an electronically locked door).

For example: the multifamily sponsors will usually pay the considerable extra cost required to do a cost segregation analysis and this will increase the investor depreciation in the early years (versus an individual, direct investor who often will skip doing this because of the cost).The advantage of the passive investment is that you don't do any work.

Some of the easiest deals my dad did were taking a large piece of land and subdividing it into smaller pieces and then selling them off individually.

That's also not a deterrent to REI...and it never was, and never will be.The real key comes down to analyzing markets, and not just individual properties. 

It was suggested that we create an operational company that will lease rooms to individuals in recovery.

I’ve got her dealing with 8 properties which have individual accounts.

If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.DSCR lenders generally let you vest either individually or as an LLC.

I think finding other value adds than ADU additions are likely to be the superior investment versus adding a ADU.Best wishes, especially wishing the best to all the fire victims.I believe the market around north L.A. is one filled with some pretty well healed individuals.

I think it depends on the individual and opportunity.

If you can identify your real drive, maintain consistency and discipline, and continue networking with other like-minded individuals, I think you will eventually find great success one day.