I would add that if you're looking to invest in both real estate AND stocks (making this assumption seeing as this is primarily an REI site), it might benefit you to look into an ETF that pays high dividends such as Vanguard High Dividend Yield ETF (NYSEMKT:VYM) and SPDR S&P Dividend ETF(NYSEMKT:SDY).

Given your criteria, if you are looking to stay in state, I think your assumption of Central Valley is correct.  

I don't have any direct experience in these markets, but my assumption would be that properties are still traded at very low cap rates simply because of the potential upside that will come when a unit does eventually turnover.Oregon was the first state in the country to pass a state-wide rent control ordinance.

That's not exactly a wild assumption...

These are reasonable assumptions.

My thinking is that if it is a load baring beam (assumption) you are going to want it correct and anyone checking the work associated with permitting of the ADU will also want it to be correct. 

.- My assumption is that if done properly, self-managing can better screen tenants than a PM, correct?

I don't know your style, so I am not making any assumptions, but there's not much money in property management on the individual level.

I don't know if you caught it but you are getting very different advice based on the poster's assumption. 

Lenders is most scenarios do not allow assumption.