It’s still a worthy strategy to force cash flow that’s rare to find in SoCal, especially if you can reduce the cost of construction by doing a conversion/using an ADU grant or even buying a property with an existing ADU In general, even if the ADU valuation matches your cost including grants, they are usually not worth it in southern CA in single family zones. 

I like the idea of STR as it seems like it can generate significantly more income than LTR and would allow me to block out dates if I have friends or family come visit.

check to see if there is still 179 on airplanes.. and then put it in the rental fleet at a very good FBO and then use it when you want to visit your new holdings your 1031 into.. buy RV's and put them in rental fleets.most syndicated RE projects these days will have some tax benefits.. just musing here.. 

This would be a very bad idea in California.

A bit about me: I’m a real estate investor (my husband and I own a 4plex in Oakland, CA), and SBA loan broker.

I am 23 and live in Orange County down in southern California.

You’re absolutely right—LA is a tough but opportunity-rich market, and I’m putting in the groundwork to make the most of it.While I’m starting local in LA, my focus is expanding across California, Nevada, Arizona, Oregon, and Washington.

My portfolio is heavily weighted towards real estate, largely because of California appreciation.

Every property up for consideration gets a visit.

While none of these options allow for immediate cash flow on the property (we are on the northern CA coast) the ARMS would allow us to break even.