I live in San Diego and it's practically impossible to get a good ROI. 

Plan is for year-round STR, conversion of 1/2 the garage to ADU to double heads-in-beds and add flexible living space too.

There are no real wholesalers in the group, and very few people doing free and clear transactions, at least that I know of, and the average level of the knowledge about real estate of any of those "Bid Dogs" attending the masterminds is very low, or almost non existent, as most of them are new members.Phil preaches that they are experts because the know just a little be more about real estate investment than the average guy, but the reality is that is all smoke and mirrors, and they feed and prey upon people expectations to improve their lives, creating false expectations about people being able to make money the easy way, with no credit or money to start with.

I am new to BP community living in the suburbs of Richmond and investing around this region since last 5 years.

If a Cost Segregation Study had not been performed on this $4.4M car wash facility located in Marble Falls, Texas, it would have had first year depreciation of approximately $293,200.

I lived in Muncie for 5 years attending BSU.

Should the focus be on completely separating the living spaces right now?

If you plan on living there a while, an extra living space would be great, but if you plan on selling it soon, I don't think it's a great investment of your time and money. 

If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.

As long as you provide a safe and compliant living space you are a going to be a good landlord.