I've often heard people say, the California market is different, you wouldn't expect great cash flow or returns, and the investment is more about long term capital growth, in which case the conventional calculators are less applicable.Can anyone suggest how I should analyze such a proposition to ensure I'm not committing financial suicide?

This is the kind of thing people in office have to commit political suicide to get done.

After reading, researching, listening to podcasts, and being stuck in analysis paralysis regarding picking a market for the past two years, I am finally ready/committed to taking action.

I don’t know how you would work any kind of LLC versus just tenants in common  ownership  just be open with a good mortgage broker and they should be able to help you. just don’t lie about it being your primary and commit mortgage fraud. it isn’t worth it for the better rate or lower downpayment  putting down 20-25% might get you a better rate and out of PMI as well  My wife was an RN at scripps in La Jolla before we moved here and she put in her 20 to retire at UMC.).

I would not discuss off line one year lease or anything else not committed in writing.

You have to make sure there is enough land to legally build a DADU, typically R6/R10 lots are the most prevalent in somewhere like East Nashville.

I just don't want to accidently commit a crime.

If they won't commit or cut off communication, hire an attorney and be prepared to file for eviction on day 31.

The rules don't take effect for 6 months, but the message is clear.Cities want their hotel tax revenue.Cities don't want those big bad real estate investors to make too much money.Cities don't want rental inventory disappearing from the market.Don't make a highly leveraged 25 year financial commitment on the assumption that current market conditions will remain the same.I stay away from things that the general public get into and it seems everyone wants to rent out an extra room or home.

Thanks in advance for any assistance, prior to fully committing I will speak with a RE tax professional but also wanted to see what the large BP communities insights may be.