My biggest concern with ADU’s on single family lots is that all the new laws have muddled what the long term value looks like, and most people don’t realize it yet. 

As mentioned, they often come with limited returns and still require management.I’m curious—when you say active investing doesn’t appeal to you, is it because of time constraints or concerns about risk?

I tried renting there one off-season, and I had the same concerns with guests overstaying. 

One of my original mentors was PRO lease option on the purchase side, however I never felt  peace about it.I was always concerned what if something happened to the original seller and they did not cooperate when it came time to exercise the option. 

And no, the purchaser would not have a viable claim over the incorrect record as all information concerning the subject property must be independently verified.Owner should have accepted the pre-auction offer which turned out to be ~2x the high bid.

For a long-term hold, I wouldn’t be too concerned about the hill or alley access.

As a beginner, you can learn a lot from your uncle with a few rentals in another state or a co-worker who's on their second house hack.

Given your concerns about California’s high prices and tenant laws, exploring out-of-state markets is a great idea, especially for rookie landlords.Oklahoma is worth considering!

About 1/3 are still not providing distributions but their cash position is strong and I'm not concerned about them potentially selling at a loss. 

If you are concerned it will be too hard to find a renter, lower the price and rent it for three months, then place a new tenant at the higher rate after winter.