These permit fees and costs of experts and contractors having to abide by all the permitting procedures become a really expensive addition to the construction costs.

Fully renovated and now producing cash flow each month.

Since the down payment was not enough to pay off the existing loan, I signed a land contract that gives me the ability to rent out the property and produce monthly cash flow until I refinance to cash out the seller.

Risks that I see are rent control (already in some places), lessoning housing regulations (there is a proposed regulation that would let any SFR be converted to a duplex, there is already ADU rules that allow an ADU to be added to most SFR, and parking requirements are constantly being reduced to allow more affordable building options), possibly at top of market (which if past history is an indicator even if Bay area is at top of market a new high will be established in no more than 8 years), potentially any number of other potential Landlord unfriendly regulations (no STRs, disallow criminal checks, rent control (already discussed), longer more onerous eviction procedures (already can take a while in some cases), mandating acceptance of Section 8 (already true in some areas), etc.).You evaluate the return versus the risks and determine if the investment appears sound. 

The farmland values in the big grain producing states... that's the canary.

Finding sponsors that can change their operating procedures without going over the cliff should market conditions change is key.  

Hi Kimberly,As far as being a client, nothing there would dissuade me from doing business with you.I doubt many people will care either.If California says yes--go produce and make as much as you can.Good Luck!

How long before it starts producing income?

Standard procedure for joining any of these offerings is confirmation of accredited investor status.

The deal produces positive cash flow as the property value increase in a landmark building and popular neighborhood.