I think you make a good point about regulatory risk.

The state has a low tax burden and few regulatory restrictions, which makes it an attractive place to do business. 

My mentor has been working with this firm for 22 or 23 years now, and they have taken care of all his regulatory work during this time.Yes, I am feeling anxious over the whole thing, and the only reason I have committed to this is his track record.

My main concern with the Chinese companies would be missing parts and damages that could lead to setbacks waiting on parts and replacements.

One or two really big setbacks early on can break a new investor.

CA Granny unit law: Summary no extra parking space required for ADU if it’s within ½ mile of a public transit stop, or part of an existing primary residence, or part of an existing accessory structure, or in an area requiring on-street parking permits parking can be tandem on existing driveway when a garage is demolished or an ADU and off-street parking spaces must be replaced, they can be anywhere on lot, including tandem no set back required for a garage conversion; side/rear setback of 5 feet max for ADU above a garage no extra utility, water or sewage hookup fees detached ADU’s shall not exceed 1200 sq ft CA Granny Unit law: Background docs bill textlegal brief

In addition, the edge of the home is several inches from the lot line, which violates the 10’ side setback requirements.

And I don't just hold others to my opinion but to regulatory compliance that is in black and white and known acceptable practices and an understanding of what happens next or the effects of what they do.So, Rob, while there is some business stuff in any business, RE included, it's really more about doing things legally, ethically and a good attitude toward people you work with.

I already went to the planning department to determine the setbacks i had to abide by for the lot. 

And it only speaks of CONVERSION of units, with that there already exists regulatory actions on conversion via zoning for example.