Your cash flow will be average, low initial appreciation, but less risk.

You also have to take into consideration any length of time that that property will sit vacant while the next tenant moves in (although in OC properties never sit vacant for long). 

Review the seller’s maintenance records to identify any existing issues or potential problems.Do your financial analysis to factor in the current rent, estimated vacancy rate, maintenance costs, property taxes, and insurance to determine the property's projected cash flow.

Hey Marc - as with any town it really depends on location … there are areas that will bring considerably more or less for the exact same home. 

PM is in place, property is cash flowing.

If you are able to put the property in a business name and separate the flow of money and put a wall between personal and business you can protect your personal assets.Taxes - It is going to make things a lot easier at tax time to show your CPA what your expenses have been. 

There are plenty of posts on this forum where high income W2 earners regret buying cheap cash flowing properties.

Emotionally, it sucks to take a hit and not own anything, but I don't want to fall into the sunk cost fallacy, and it would be nice to be out of the landlord game on a house that doesn't cash-flow positive.

The negative value with respect to the cost of building is such that it can consume years of cash flow to recover.  1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

I really do not want to sell the Condo because I do have a 3.5% Interest rate w/ a positive cash flow of about $450/month, even after the $330 HOA fees.