I know labor is cheaper in the Central Valley but I doubt how big an arbitrage opportunity there is.And I suspect Bay Area has tighter and more onerous building code, plus permit departments that feast on developers.

However, I was playing golf with my attorney friend who owns a title company and he said that the Japanese Tax Code allows for 100% depreciation over 4 years if the apartments are mostly frame and are 25+ years old. 

This is a grey area in the property tax code.

Demolish bedrooms in garage (not up to code) 17.

It may indeed be a bit higher, I had to replace 1x6 beams with 2x4's per new code regs.The tile was picked out from a local tile shop - its a 12x24 "Metropolitan Olive".

These days there are flexible gas lines that might be allowed by code.

Build it smart from the ground up so you can manipulate the meta code, Facebook Open Graph code, and the Google+ code.Make sure you build a wordpress inside the site and blog on it often.  

I've taken a two day course with George Antoine in regards to his book the Wealthy Code.

So take that into consideration when you're looking into your options and the law/code.2) Look into:RVTiny homes (some could be below the square footage that comes under scrutiny)Tiny homes on wheels (like RV, but smaller, and less unsightly) - the wheels at least get you out of the building code issues.

We have a number of SFR and duplexes in that zip code.