@Bob Asad I like the individual sub account method escrow account, but there are multiple different ways to hold security deposits and multiple laws in different states.

When we built up the triplex, we set it up so that each of the 11 rooms can be rented out individually (all BR, except 2, have their own bathroom behind an electronically locked door).

I actually keep a list our bookkeeping firm recommends based on firms/individuals we and our Clients have had good experiences with as well as I've personally had good experiences with.

Some of the easiest deals my dad did were taking a large piece of land and subdividing it into smaller pieces and then selling them off individually.

I think finding other value adds than ADU additions are likely to be the superior investment versus adding a ADU.Best wishes, especially wishing the best to all the fire victims.I believe the market around north L.A. is one filled with some pretty well healed individuals.

It was suggested that we create an operational company that will lease rooms to individuals in recovery.

If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.DSCR lenders generally let you vest either individually or as an LLC.

Here's an example why:- One of our people made a mistake last year, and entered an expense of $1500 instead of $150 - they accidently typed an extra "0". - Fortunately, our transparent systems allowed the owner to catch it:)- Full transparency - we would have never caught this honest mistake:(An owner also needs to be involved to approve & fund large expenses: maintenance, property tax & insurance payments (if they want to be more hands off), evictions, etc.A great PMC should also have a chat with you annually about your future plans for a property and your portfolio. 

I think it depends on the individual and opportunity.

Definitely enter with caution.