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

He said they are killing it compared to regular SFR rentals.

There are ways for the smart, savoy, and willing to educate themselves fast, folks who want to build wealth in real estate to do it now and rather quickly as compared to most other industries.

Or, you can try moving out to Morgan Hill or Gilroy, where home prices are more affordable compared to San Jose. 

I would also highly advise to spend 30 minutes and do a rent survey yourself and find comparable units and see what they rent for and charge.

Sellers will also like that better.Finally, don't compare your offer price against the list price.

Not sure what the process is like there but compared to NY, it is a faster process.We just toured an occupied 4-family in NY today with a client and the eviction process for those tenants commenced not long ago (within the last couple of weeks).

Compare that to Vegas, where rules can be restrictive and condo-hotels often come with sky-high fees or limits on how you can use your property.

Interesting in hearing feedback and pricing comparables to an off market potential deal where I have met the owner who is willing to sell his 3 units building (SFH with 2/2 and behind it an ADU with 2 other 1bed units and 2 car garage).

I also do a lot of market research in each of the markets we operate in to understand how much comparable properties would charge.