Here’s why:Maxing our your loan (and decreasing equity) in anything is a bit risky.

So typically do 1-2/year and the profits I have been able to make still more than offset the rental income I make by many times over.The risk is that with flips, the deals dry up. 

It seems risky.

@Christopher Smith Yep, hopefully the voters of the state will wisely reject this proposition as they did with the last similar one back in 2018.The California Apartment Association helped lobby against the last one, and they’ve already started gearing up to try to get this one defeated. 

Title insurance is written on the basis of risk avoidance not risk assumption, that's why the premium is based on the amount of insurance and not the amount of risk.  I

This varies and by no means is a hard and fast rule but if you are basing you investment strategy on the perceived added value of the ADU, this is a very risky endeavor.

Just about every other investment "class" considers using leverage to be risky --- high risk, high reward. 

All in all, it could have been a risky investment, but we did our due diligence and it paid off!

Not sure if they will think it’s scaling too quickly or look at it as being too risky.

However, we all know "advice" can take the form of "don't buy real estate, it's risky, you'll be fixing toilets at 2 am, my uncle lost it all...")We all know and love the BRRRR method, but why can't the core tenants of the BRRRR strategy be applied to building a brand new house from the ground up?