There will be a huge gap between coverages and replacement costs. - Renters are majority uninsured. - In September 2024 the FAIR Plan had $6B in exposure to the Palisades alone.

The big issue is building a single small residential unit is the most expensive residential development.Here is a list of why adding a single ADU in single family zoned areas in my CA market is typically a poor RE investment:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

That cost me about $1,000 each time. 

Hi,I have been looking at some of the resources for inspecting properties and estimating costs on this site, and the ones I have seen are detailed spreadsheets and multi-page checklists.

If you turn any two "bonus rooms" (rec room, office, formal dining room) into two more bedrooms, then you're at $5,950+ per month—a 138% increase in rental income.Now, imagine scaling this across multiple properties while keeping lower upfront costs compared to multifamily properties.

Have been house hunting for awhile for a primary home or multiple, I am now considering building new rather than buying old ones with high maintenance cost.

I don't know enough about the start up costs associated with the ATM units but I am generally against businesses that have a short shelf life and here we have one we are fairly confident will be deemed obsolete. 

My local market is cost prohibitive to invest in and the thought of assembling a "team" of unknowns in another market was scary. 

For the high cost areas like Palo Alto it is difficult to get a property to cashflow out the gate because rents have not caught up with the cost. 

So, this cost a bit more in closing costs BUT your are out 34,750 plus closing costs instead of putting down 25% of the 340k which 85k plus closing costs.