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

Let them pull this crap in CA now.

Quote from @Chris Seveney: Quote from @Jay Hinrichs: Quote from @Jay King: Its only a matter of time before the do.

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

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

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.

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

Too bad most REI clubs don't adopt the model embraced by the FIBI clubs in southern California.

In California, where I live, it could take a long time.