these can produce good returns but best chance for success is for those that have experience in this area (I am a partner on an effort adding 8 ADUs, but it is not performing to the initial underwriting (underperforming) and it is an experienced team).good luck I get it, but not everyone has the opportunity of scale and building multiple units.

I was told initially that commercial deals(5 plus units) were based more off income property is producing than personal credit/finances but that's not entirely true.

@Morgan VienCalifornia is generally more cumbersome than other states when it comes to taxes and filings.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

Suggest you check in with him/her on this additional service as your attorney is already intimately familiar with the file and you can often give them pre-authorized amounts to settle on vs trying to squeeze all the blood from that turnip. 

Quote from @Zara Massoud: Your new PM is correct and the old ones were wrong.The property manager must have your social security or tax ID number on file.

You might need to file 1099s if you used contractors or other people whom you paid for labor:https://www.biggerpockets.com/forums/51/topics/1167632-expla...

Any taxes not owed, a seller merely file a tax return with the state, just like any other tax returns filed for extra taxes a government has with held. 

Same goes for number of LLCs and what to fund them with, since bear in mind that CA tends to be more cumbersome and expensive to have LLCs than other states.California is generally more cumbersome than other states when it comes to taxes and filings.