While it's still a good deal, the upfront costs are considerably higher than I initially anticipated, especially since the seller is backing out of covering the costs of septic system decommissioning and sewer connection.I'm at a crossroads and unsure of the best course of action.

Anticipated cost $1800Finally, there are 5 windows that need to be replaced, the kitchen window on the side of the house and 4 windows in front.  

I also am not anticipating a crash.

Municipal assessments, tax increases, past bills, anticipated zoning issues filed or under consideration, redistricting matters, future plans like a sewer going through even within the long term plan are all issues that can be addressed in a few minutes on the phone.You should be familiar with standard exclusions and keep them in mind when you inspect any property, such as an unrecorded alley right of way or encroachments.Liens are covered under federal law, applicable to those you mentioned.

I am not at 52 years of age, I suspect investors are anticipating better than average appreciation for this market over the coming decade. 

But, it rented within 1-2 weeks, for a little more than I originally anticipated, when I started the process.

I am personally investing in surrounding smaller towns where there are better margins and good anticipated appreciation potential. 

I'd fully anticipate the cost of this project to be around 300k all-in and I'm keen to understand how people are financing accessory dwelling units around the country, in California, and certainly in the bay area.I'm also very keen to understand how these ADUs are priced in a refi scenario.

Looks like next step is getting the GC licence sooner than anticipated to be legit.

Additional steps for protection you can take are: 1. require disclaimer for the pool use - it is your obligation to oversee + ID2. pool signs for depth 3. paint depth on decking + more signs than you think are necessary 4. signs on fence & on the listings for no diving + no life guard  on duty5. signs that the pool throw ring is NOT a toy Basically anticipate the worst and it will mitigate a lot (not all) of the crazy things people could do.