That kind of restriction just doesn’t work for someone like me.I’m trying to figure out if I might be missing something in how I’m approaching this or if others have insights or examples of towns that not only allow STRs but also have laws that offer enough flexibility to operate in the way I’m aiming for.Many towns technically permit STRs but impose restrictive rules like membership requirements, ownership duration limits, or rental day caps, making operations challenging.

The ADU I am thinking of adding is on a triplex property and my understanding on the valuation of these types of properties is cap rates (4-5% depending on the neighborhood in LA) and thus adding more income to the property increases the value of the property assuming the cap rates hold Triplexes and quads are not appraised on cap rates if using conventional financing.  

I also don't want tenants and their movers hauling major appliances around and banging up doors and walls.I bought most of the washers and dryers used.

Places like San Antonio might present more favorable cap rates, from what I read in Forbes recently.Refinancing could free up equity if today’s loan terms are more attrative, though that depends on current interest rates and the property’s updated value.

This is relevant for multiple reasons 1) appreciation is where the real wealth is generated in RE 2) real estate has tax advantages over cash flow 3) in CA property tax increase is capped.  

SECTION 8 ANALYSISSection 8 Rent permitted            $1785.30Subtract Utility Allowance             - 468.00    Actual Rent Charged               $1317.30Subtract Mortgage                         - 500.00Subtract Prop Mgmt Fee               - 131.73Subtract Taxes (20%)                     - 263.46Subtract 10% Vacancy                   - 131.73Subtract 10% Cap Ex                      - 131.73            CASHFLOW TO US             $ 158.65STANDARD LEASE ANALYSISMonthly rent (asking amt

Finally closed it at a 12+ cap on in-place.

Lots of investments return 20%+ and are legit, perhaps high risk (like venture cap, hedge funds, real estate value added).  

If you are looking to avoid cap gains on one, ok, but paying you a little more to become the bank is not whipped cream on a sundae to me, it's like one old walnut.

We had a rental in FW & we kept a separate account for Cap X repairs and thankfully we did.