Unless you're in a situation where you're at high risk of being sued like a doctor or you have a lot of assets and people are after you, I don't think it's worth the extra hassle

If you have a foreclosure notice or judgement pop up in public records, you will have a much harder time getting loans in the future to continue your real estate investing journey.So what has your experience been with lenders? 

I would also say you can probably find a better return for your STR than 10%, but if you want to use it for your families vacation then it could be worth it for you.

Need advice if this is worth looking into.The property has been negotiated at a 20%  discount and 7.6% tax adjusted cap rate. 70% LTV with Freddic Mac loan.

My question is at what point is it not worth it to use this as a rental?

All of that being said, in the eyes of the City, if they do not have any record of work ever being done to finish the attic space then regardless of if you make it separate unit or a Duplex, you would need to obtain a building permit and bring all work completed upo to "Current Code Compliance".

Will returns be worth it, most likely yes!

But it's worth dipping your toes.

My net worth is nonexistent so i will be betting on locating a property which will attract the interest of private investors.

Well worth the price.Here's a quick guide provided by the state of California: https://landlordtenant.dre.ca.gov/resources/guidebook/gb10_m...