San Diego builds less than it grows; vacancy stays thin and rents firm. Yield at purchase is modest — the game is adding units and riding supply scarcity. That makes San Diego the ADU strategy's national capital.
City bonus programs have allowed multiple ADUs on many lots, transforming single-family parcels into small rental compounds at residential financing and land-cost basis. Underwrite construction realistically (per-unit build costs, utility connections, timeline) against strong small-unit rents in transit-adjacent neighborhoods — City Heights, North Park's edges, and Clairemont corridors lead the conversation.
Owner-occupied duplexes and homes-with-ADUs let new investors enter on FHA/VA terms in a market where pure-investment financing rarely pencils day one. Military investors cycle VA benefits through this exact play repeatedly.
California tenant protections are real statewide (just-cause, caps under AB 1482 for older multifamily) — operate professionally with compliant leases. Coastal corrosion and fire-zone insurance shape maintenance and carry by pocket.
The investable feature is often the parcel: alley access, slope, zoning bonuses. A verified RealtyChain agent who reads lots with ADU eyes can filter your pipeline. Start with the free match form on this page.
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