I have a w2 job earning about 100k a year, with a good amount of capital and some equity on my home (since it’s on a 15 year).

Today, let's discuss property tax assessments.

This means you are doing it strictly for the cash flow.If it were me, I would go the ADU route, Rents could be comparable to the condo without the HOA dues (yes higher Cap-Ex but those are long term expenses), and with everything on one property, things are just easier to manage (one mortgage, one property tax bill, one insurance, etc.). 

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Another thing to check when running your numbers is the POTENTIAL taxes on the property.

They carry forward but would be much stronger from a tax planning perspective if they were used to offset active income. 

Bay area could support that as most SFR landlords here are high earning techies.  

The accounting aspect is a an additional thought I hadn't heard before.I know some people have used this strategy in an attempt to avoid triggering a re-evaluation of property taxes.  

I recently received the PT-100 personal property tax return for filing. 

In a bid to get people into these homes and paying property taxes, the state of Arizona rolled out a plan for active duty members that paid 22% down on any house in the state that had previously been lived in.