Also check with the city zoning to see how many DADUs are allowed, some areas you can legally have two.

The common legal reasons to not renew the tenant are to move in family or to do a rehab large enough that tenant cannot live in the unit.  

Before she does this she should seek legal help.the comment about giving up ownership, if it was you, what would you rather have?

I’m assuming it’s just like everything else, won’t learn it (or potentially get any sort of leads) until you do get it.

HOA now will be allowing max 3 rentals per year, which they say avoids the potential "grandfathering" issue.  

Now someone with more legal knowledge may be able to chip in and explain if there is a way to avoid that in a worst case scenario.

The value of the property will definitely be more valuable if you convert it into a legal duplex, but you must also consider the area of the property.

Hi Kiran, It's advisable to seek legal and financial advice when structuring the partnership and drafting any relevant agreements.

You should know the contracts and the closing process, construction costs and all the potential money-pit issues to look out for with properties, so that you feel comfortable with your EM going hard without a proper inspection, etc.

This project has the potential to be a 1 mil + project if done right.