Fix stuff asap that could cause issues, like a loose or rotten deck board.Many mortgages have a due on sale clause that would get triggered by a transfer to an LLC.

So tech people is replacing older homeowner that want to cash out and they move to sacramento/denver  for example ; and trigger the same migration loop.

Then, we hand that list off to the official inspector to investigate further.So, with all that, any property I consider goes through 3-6 layers of inspection before I pull the trigger. 

Moving out sooner will trigger questions but most lenders require an explanation (i.e. needing more space) and they move on.A couple of thoughts that come to mind:1.

In your situation, you can plan to minimize your losses or to trigger passive gains to absorb these losses.

Please make sure no matter which market you pick, you have a solid team on the ground picked out, and a good understanding of the market you choose before pulling the trigger.  

I built my ADU in 2020 before SB9 passed, which put my original house under rent control because it was built pre-1978(2 units on the same lot triggers rent control if one was built pre-1978).

Because they think it is going to lead to riches and they have no idea they’re looking down the barrel of a loaded gun with a trigger that is going to get pulled within the next 24 months.

Next renovation I will have it outlined & ready to pull the trigger when ready.   

Note:  We still pull the trigger on some deals even if it's just below are target numbers.