Doing your homework, checking everything carefully, and planning well can help you avoid big mistakes.The best place to put your money depends on things like how the market is doing, what's happening in the economy, what you want to achieve, how much risk you can handle, and what you like.

If the ADU is a separate structure it is generally pretty easy to get a sub meter put in for utilities.

Being new to this biz, there is a lot of fear and trepidations associated with the "right" deal and a network of lenders, agents, contractors you can trust.My strategy at this point is 1, put my money to work for me, move my money into a real estate/ self directed IRA and then work into the fix and flip side of the business. 

And that is actually why I put that part in the post because that plays into my decision here. 

Fund managers do not care about individual investors unless they make up more than 5% of it, and if you're an individual investor that is more than 5% in a fund you just put yourself in the aforementioned risk territory. 

The penalties seem harsh and I wonder if those will adjust, but they put in things for plumbing out, property damage etc

Now, a lot of wholesalers do not even put up EMD, which is technically a breach of contract, but that aside, let’s continue. 

Although, it is a good idea to ask your tenants to refrain from putting anything in the toilets with the exception of human waste and toilet paper because it is possible some tenant overloads their toilet with the wrong items.

As this is a all new to us I am trying to put together a Due Diligence Checklist to take with me on the trip.

I'd like to sell one of my rentals and put the proceeds into stocks instead, but if the tax hit is too high, I'd do a 1031 exchange.