Landlord-tenant regulations are a bit complex in California and getting hands on is the best way to learn before expanding into larger investments. 

Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

Some of the larger companies will take them, but they often charge a fee.

I know that it eats into profits but it is something to consider for at least your first rental.

A good property manager can help with tenant screening, enforce lease terms, and handle evictions more efficiently if it comes to that.Require a Larger Security Deposit: Within the bounds of local regulations, a larger deposit can provide a cushion in case of damage or unpaid rent.Consider Rent Guarantee Insurance: Some companies offer insurance products that can cover lost rent in case of tenant default.

In fact, the most profitable deals I've ever done were in these markets.

Let’s say you have 12 lots and if everything went perfect in the exchange you would recognize your $30,000 profit per lot across the board.  

Yes when I looked at my pretax overall profit in the flip it was really close to my pretax salary for the same amount of time.

What this implies to the typical RE investor is obtaining significant cash flow is a big challenge right now and relying on other RE profit sources (such as a value add and not doing a value subtract) may be a more certain path of generating returns.  

If you are waiting on a repairman for those as well general repairs its going to hurt your profit and your appearance.