I know I will find answers if I keep reading and exploring, but I have a potential deal going right now, so I need the answers sooner rather than later.1.

There shouldn't be double taxation because rental real estate normally operates at a tax loss.The potential time that there will be a tax consideration is when you sell the property.However, your resident state(MN) will provide you a credit for taxes you pay to a different state.This will avoid double state taxation.In general, California state taxes are higher than Minnesota state taxes, therefore, you will be paying the higher of the two state tax rates, which is California.

Minus potentially a small discount since it's an ADU?

You are still legally entitled to claim the interest you paid as a deduction.

However, every time a showing is scheduled the place is so messy that it is impossible to get inside without tripping or potential injury.

. - with this, we can potentially increase rents by up to 145% depending on a comparison with baseline 1977 level rent amount.I have 2 questions:1) If there exists these 2 other, legal ways to increase rent in a rent controlled area, why does it seems like the only option most investors consider is cash for keys?

My markets are very difficult I'm finding, even when looking at potential fixer-uppers, the numbers just don't work.

I will meet in person with a potential seller if they show interest.

If it's in decent shape, I would do a couple upgrades to appeal to potential homeowners (adding window shutters or bark mulch outside, an accent wall, nicer light fixture in living room, etc. etc.)

EP #1 doesnt get out of bed unless the deal is $20mil+ and EP#2 is more in the $1-$2mil range and would hope to JV a potential project with others.