For the Central Coast specifically, that's close to true. Inland Central California pencils more easily because prices there sit lower relative to rents. Decide up front which game you're playing: a cash-flow play or an appreciation play. They get underwritten differently. In expensive California markets, most properties won't cash flow as a standard long-term rental unless you bring a large down payment, run a short-term rental where that's allowed, or add income with an ADU. An ADU can tip a marginal deal positive, but it's no magic bullet. The result hangs on three numbers: the rent the unit will actually command, the true construction cost, and your down payment. The common mistake is overestimating the first and underestimating the second, which turns a spreadsheet winner into a money pit. We did a full podcast episode on ADUs for exactly this reason. So do genuine due diligence before you count on one: - Get real build quotes, not per-square-foot guesses. - Verify what comparable ADUs actually rent for in that market. - Confirm local zoning and permitting before you write an offer. And nobody can promise appreciation, so don't rely on future price gains to rescue numbers that don't work today.