That said, there's quite a few homes in that area that have that challenge (no driveway/street parking).

We started in earnest last year and have done quite well with it..

No cameras allowed in common areas except that provided by landlord, garage agreement, and so forth, then I see no problem warning this guy to fix or quit. 

You can only play games for so long.Chances are your next door neighbor is an IRS agent and turns you in when your tenants blocks their drive or some other random event disturbing your IRS neighbor.ADU catches fire and your insurance won't cover you, because it was an illegal and unpermitted structure.The city inspector told the last guy not to build or rent it, and is now pissed and wants to make an example of you and just red tags the whole property and no one can occupy for the next 1-2-3 years while you wait for a hearing.Then when you get the hearing, "staff" recommends you tear the whole structure down, and if you still want an ADU, you can apply for a permit and rebuild it.Your tenant quits paying rent and won't move out and you can't evict them, because there is no valid lease and they're just your "roommate".Probably a dozen other bad things can happen to you when you do stuff like this. 

Taxes, interest, insurance and maintenance will eat into the profit. 2.  

@Robert Pierce That sounds quite typical.

If you have the opportunity to list this during the summer in the future, you will likely be able to get quite a bit more for your unit due to seasonality. 

The property has done quite well and has appreciated nicely over the last couple of years as I’ve gone through and improved things unit by unit.

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