California owners, should we increase our coverage, which should result in higher premiums?  

ADU increase value less than the hands off ADU addition, but a developer is not a hands off ADU addition.Thanks

Largely, the appreciation in housing prices is coming from both new migrants and investors coming from the East (GTA) as well as international countries (predominately from the middle east).We are also seeing drastic increases in the rental rates which in turn are pushing investment property prices up as well.

High ceiling looks great but increases your utility bill.

Also, as long as the house appraises, taking broker commission and using it against down payment and closing costs means lower cash requirements for me which increases my CoC returns.

Gave the other tenants a smaller 250 increase and fixed up attic space to rent as storage.

My guess solely looking at your numbers is that it's an older/distressed property which means you have to account for more costs in capex. 2nd thought being it's not in the best of neighborhood then you'd have to take into consideration lower quality tenants/ neighbors and maybe increase expected vacancy and late payments.

Planning on increasing my daily budget to probably $25/day and maybe adding in another state for $10-$20/day too.

Real estate has always been in the back of my mind as a way to increase our wealth and provide for our family.

Deviations from the PLRs will significantly increase the risk to you since your transaction did not follow the PLRs exactly.Deviation from Private Letter Rulings There are a couple of areas where transactions deviate from the three (3) Private Letter Rulings discussed above.