As someone based in San Diego, I’ve also noticed that investors eyeing California real estate tend to focus on potential future development or expansion (especially if you have the patience to navigate local regs).

This is common for that build time frame.

I noticed on the city website that it can only be done in certain areas, which I'm more than fine with.

If you searched the forums as stated you’ve noticed that it’s been asked EVERY time this question is asked.

You're facing a common investor challenge: learning from experience (and sometimes mistakes).

The most common asset type was commercial multis 7-10 units. 

If you have hired a specialist to perform a cost segregation study of your real estate property, they will likely use one of the six most common methodologies recognized by the IRS.

There is still a risk: You do not have the right outprice and lose money, your deal goes south due to unfound things when you bought it, then the rehab phase brings them up, and you spend more, and the market changes, which is something that can happen on a moment's notice.

For instance, a friend of mine transitioned into the BTR market in Austin, Texas, after noticing consistent rental growth.

A famous quote: Do unto others as you would have them do unto you” is commonly known as The Golden Rule.