Where's in CA?

I’m in CA also and paid cap gains on huge profits to the tune of 28%, which included CA state cap gains.

I currently live in San Diego, Ca. but have been looking in the midwest, mainly Iowa, Indiana and Ohio, for properties. 

For example, section 8 in California is not going to be the same as doing it in Ohio.

Investments from CA tech companies is driving job and population growth. 

NAFTA was renegotiated under the last Trump administration, but it is clear that Trump is going to do whatever he wants. good time to be a private US lender lending in CA..

Quote from @Steven Barr: Quote from @Jay Hinrichs: Never did one in GA .. my experience is in CA..

This would be a very bad idea in California.

There are many reasons that adding a single ADU in southern CA is a less than ideal RE investment (i will post a list at the end) but the negative initial equity is a primary reason as the initial negative equity position consumes the initial cash flow and can take many years to recover.As for converting your home to a rental….

I will give you the common-sense answer below, but this is California, where common sense doesn't exist.A mandatory evacuation is outside of your control, so you shouldn't suffer financially because of it.