I explain that on my condo, house and accessory dwelling unit alone here in Los Angeles will net approximately $100,000/year with 3% appreciation in 30 years.   

The owner may reside in either the remaining portion of the structure or the newly created junior accessory dwelling unit.

In and around Seattle Single family homes with accessory dwelling units tend to have the best HouseHack ROI, followed by large single family homes rented by the room and true duplexes. 

I wanted to share my experience planning, permitting and now building a 3 bed / 2 bath 800 square foot detached accessory dwelling unit (ADU) / back house / laneway house at one of my single family rental properties.

@Kenneth Olsen There's a ton of HouseHackers here in WA - a combination of high-cost real estate and many cities (like Kirkland, Seattle, Tacoma, etc) having favorable accessory dwelling unit / backyard cottage laws makes this a great state for the strategy. 

Wanted to connect with BiggerPocket members who are located in San Jose and actively interested to build and invest in Accessory Dwelling Units (ADU) as an affordable rental option.

Personally, I would consider alternately looking for a well priced SFH and building an accessory dwelling unit (ADU), also known as an in-law unit. 

@Nikki Closser similar story: we recently closed on our first investment property three days before closing on our new primary residence lol :-) We also relocated, sold our house in Los Angeles - which we had rented out with Airbnb and had built an Accessory Dwelling Unit in the backyard, and moved to Columbus Ohio.

You will have to go out and visit your properties even if you have good management and those costs can really take a chunk out of your cashflow when it's just a property or two.Yes Denver is tough right now, but you might consider another condo (maybe turn your current one into a full rental and do another owner occupied loan to keep your out of pocket costs down) A house with an accessory unit that you could rent out might be practical.

 Arlington County should soon allow accessory cottage type building to be built in the backyard ..