Doing a live in flip would take much longer, but would be significantly less risky.I've managed a property out of state and currently own a multi-family out of state and I agree there are definite downsides.

They are fairly new, the downside is that they have not been heavily court tested.

You can definitely get strong returns (stronger than most markets in the country), but the one downside is still a lack of growth.

The downsides are 1) if you aren't owner occupying it, you're probably not going to have any options.

Main downside is temporary house culture.

Could do a construction loan then refinance the property to pay off the construction loans.Junior ADUs must be attached to the primary residence (i.e - attached garage can be converted to a jADU, but detached garages do not qualify) and require owner occupancy which is a huge downside if you are trying to buy a new property every year for owner use to get away with <20% down payment.For some numbers, my main house is 4bed/2bath renting for $3500/month and ADU 2 bed/ 2 bath + Den used as 3rd bedroom will rent for around $3000/month.

There is no guaranteed absence of downside.

In this scenario, the downside is what one puts in and the upside is high.

They have more optionality and lower downside. 

I guess if it is, the downside is still pretty low.