While you can potentially rent-by-room, this is a really tough configuration to do that with as 3 unrelated people seldom want to share a bathroom and if they do, they expect a pretty steep discount for it.When you mentioned rental arbitrage do you mean that you're open to someone renting it from you for the purpose of using it for arbitrage? 

This quitting W2 to survive on REI reminds me of the FIRE movement or Paleo diet.

So why is the cash flow seldom outstanding in San Diego?  

ADU in sf areas of San Diego are seldom getting values from appraisers over $100k.  

We stopped in last 2021 to allow for a pause / stabilization and are now doing some build-to-rent.I feel this is, now, a harder market to get great cashflow, but we have seen good appreciation and good rent growth, so eventually more cashflow will come.Happy to meet up for a Diet Coke and chat. 

Seldom sell. 

Yes you should easily shed a good portion of it but to shed all of it will be a lot harder and needs diet and exercise (not just one)This is evident also by the latest treasury bond sales - other countries are slowing down buying our debt which means rates (especially mortgage rates (will stay higher longer).

I cleaned up my diet.

In the quest for financial independence, real estate investment emerges as a beacon of opportunity, offering paths to wealth that traditional saving methods seldom traverse.

Reality is seldom so absolute so all of those numbers are not necessarily perfect but that's likely the gist of it.Some other things to consider: Is your scope of work appropriate for rental grade?