In California you also have to worry about rent control and not violating the rent-increase caps for your jurisdiction through new utility billings on a preexisting tenancy where utilities were previously included.The cost for third party billers is minimal and they'll help you get your arms around all this if it sounds too complex.

There are a lot of details to all of that, but here is the handbook: https://www.hcd.ca.gov/policy-...California is relatively STR friendly, ESPECIALLY if you live in the unit as your primary residence...which sounds like a great possibility for the OP.Look around for a house that has a detached garage, basement apartment, etc. 

Sounds like government logic to me 🙄.  

This sounds like a non permissible expense and it needs to be amended.

but, it sounds similar to what you are envisioning you might try to do.

etc.Then if all sounds good, I schedule a showing.Then I tell them how to apply.

Replacement Reserves: What's the average cost per unit, and what conservative figure should be used in financial planning?

Sounds like you have your head in straight, Cody!  

It can be really difficult to replace the duct work if you come across something like this.  

Sounds like a business problem in the area that needs to be solved and could be worthwhile.