I say you should weigh those options for yourself based on research.

An additional benefit of a detailed engineering-based Cost Segregation Study is that it can increase potential insurance premium savings as well as provide support for the property tax appeals process.

Hi Matan-Great question.I work with many physicians in California.The thing to do is find an investor friendly Realtor in the area you wish to invest.I am based in Ann Arbor, Michigan.

Set a goal, work backwards, and create a realistic strategy based on your personal abilities.An aggressive investment strategy can get you free from your 9-5 in about 3-5 years.

@Michael Evans Hi Mike my name is Nathan I'm a Director for New Western and based in Southern California. 

That being said never base your offer on the other guy.

The life estate will spell out the obligations of the step-father (taxes, utilities, insurance, upkeep - or even a base rent that you could use to cover those costs).

If I do the work unpermitted by a licensed contractor, is it illegal to advertise it based on the added bedrooms?

I don't know of any banks any more that will do a construction loan on investment properties based on completed value (i.e the finished value with the built in equity).

@Marcus Auerbach, there are plenty of lenders who use a DSCR 1 ratio and base the rents on actual rents or the rents on the appraiser market rent survey.