A local RE professional should be able to provide this information to you as well.In New York, we deal with this scenario frequently and oftentimes it does not make sense to legalize ADUs because the permit process is extremely lengthy, the cost is high (sometimes $150-300K for 1 ADU unit), and the potential increase in property valuable is not worth the risk.If you already have an approved permit/plan and can get your renovation down to $80K, you may want to consider this project if the ARV is say north of $800K.** You should also look into any potential property tax increases associated with this change.

Not a whole lot built in savings, but I do know a few potential partners that would want to go in with me and I'm good friends with a local GC.

Do you plan on investing locally?

Trail each purchase w a 10% downside stop loss limit order if you're not confident in the REIT, then continue your research on private real estate, and when you have the capital/team in place/knowledge of the local real estate market put it to work then, no rush. 

Your local apartment owner association is a great resource for best practices for management and screening tenants.

My husband has been a realtor for over 30 years and we were always very active locally with investment properties. 

My local sherrif has a policy for vacant homes that you can register the address of a vacant home and give them permission to enter at any time with out a warrant. 

While most of the investors I work with are local, I have met a lot of out-of-state investors buying in Arizona too. 

Lots of great locals/agents here that can give you Cali specific info. 

Networking led to the opportunity, as the previous owner reached out to me through our local REIA.