With that amount of equity and being in CA I think you have a couple decent options1.

In California you need a closet to be considered a bedroom plus an actual door on the room.

I personally would look to a growing market and then exchange the money back to CA later, when things soften up.

I had two different companies.. one in Oakland CA circa 88 to 92 all investors all private and all 100% of funds for loans put up from the investors. 

However, if your father inherits and later transfers the home, it should qualify for a step-up in basis to fair market value, reducing future tax liability.If the goal is to tap into equity, having the trust take out a HELOC may be a better option, avoiding California Prop 19 reassessment, which could raise property taxes significantly.

If anyone knows a good go to in Temecula California.

.: Hello everybody, specifically asking for the Fresno, CA area. 

Will Add in CA  there are 3 ways to do the Private loans.. 

The issue is building a single small residential unit is some of the most expensive development.Here is a list of why adding a single ADU in single family zoned areas in my CA market is typically a poor RE investment:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

I sure am thankful I'm not in California!