I'm currently working under a general contractor by day, a job I took with the intention of getting into fix & flip, which will be my main strategy for the first while.

Up to you if you want to hang your hat on the de jure letter of the law or the de facto realities of the situation as it stands now.

If I were investing out of my market I would be a lot more sophisticated in my research. mainly I would be watching job growth.

Torrance currently has zoning code that covers accessory dwelling units (ADUs) that I would like to take advantage of to permit the rec room as a dwelling so that I can live in it and rent out the main house.

I’m getting started with a few business ventures, mainly Airbnb and BRRRR. 

If I rent it out I can factor the 600 sf addition in the rent (unlike if I were to sell), but I only have 1 bathroom so I’d assume spending the money and making the house a 3 bed 2 bath would be worthwhile at the very least.

Focused on mainly Johnson / Douglas counties at this time.  

I know this question depends on a lot of different factors but I just wanted some opinions from the BP community.

With that disclaimer, if they're already under the impression that you're the landlord, maintain that degree of separation by suggesting that you are not the sole/main decision maker.

It gets the point across so that’s okay.To your original question for me if you were pitching me to be an investor with you, the two main things that would convince me is your knowledge of the numbers and costs and you putting your own money into the deal.