I was trying to work with a manufacturer or pre-fab/modular housing units that you can just drop/finish at a construction site / plot of land in only 3 days, but the big obstacle is local zoning/permitting against modular/pre-fab construction. 

What are some unforeseen challenges, road blocks, and obstacles a newer investor can't see as their starting up that will get in the way of this goal?

Now using Raleigh for multifamily units is somewhat of an obstacle but it doesn't mean it can't be done.

Libel, Slander, etc.)Loss of Rents: Enough coverage for 12 Months rental incomeContents: If you furnish any contents, yard equipment, etc.Other Structures: A high enough to replace any detached structuresOther Coverage that may be important:- Ordinance & Law (if you will have to rebuild to different codes)- Service Line coverage (for underground utility lines/pipes that are outside of the foundation)- Equipment Breakdown (for the systems)

Another great opportunity would be to build a DADU (detached accessory dwelling unit, essentially a carriage house) if you can get the right owner-occupied property that are zoned R80-R6, RM2-RM20-A, RM40-RM100A, OR20-OR40A and ORI and ORI-A AND in an historic overlay.

THose are some ideas to overcome the obstacles I mentioned.

I recently built a detached 1 bedroom ADU above a 2 car garage in San Jose. 

On top of that, there's a brand new 2 bed 2 bath detached ADU in the back.  

Is the high overall pricing an obstacle?

Hi guys,We are looking to build a detached 1200sqft 3 bed, 2 bath adu behind our house in Reseda, CA (the valley north of Los Angeles).