The job has been ideal for several reasons.

If you dont have a true "private lender" meaning an individual loaning their cash and or 401 secured by the deed then there is no way you can ever scale! 

This is a great location where my wife and I really want to live, so we are very interested in this multi-family for personal reasons. 

The only other reasons I could think of is 1.

Do the math, pay taxes now on a small amount or pay taxes later on a larger amount, it really doesn't matter - this is very true when making the Roth Conversion decision and is pretty close on distributions.The issue is the penalty! 

Accordingly, you should gather data to support offers other than list price and when you make the offer, if it's low, politely explain your reasoning.

@Glen Wiley Not necessarily true.

What this means for you s that there is a good chance that your existing SFH becomes rent controlled when the ADU is placed in service (I would like to see the law clarified on this as this practice goes against the rationale of the 15 year exclusion). the reason this is important is that any rent reduction places your base rent at that point for rent control purposes.  

Multifamily is a competitive asset class for a reason!

And there are good reasons why we wouldn't:1.