I own my primary residence and a cottage that we are in the process of gutting, neither are income producing unfortunately.

For example, if there's a nice 600sf 1bed/1bath cottage on 0.5 acres, with no restrictions, what's a way to measure this vs. an identical piece of land on the same street with a house of similar construction/quality but only it's 2bed/2bath and 1800sf?

We transformed a typical 1950's split level ranch into what we like to call a 'Farmhouse Cottage'. 

Very cottage-y too. 

I would say Eden Prairie is an A location and Cottage Grove is a B.

The most obvious items listing agents are supposed to disclose are "adverse material facts," such as the roof is Swiss cheese or the house sits on a sinkhole.But what is required and what agents should do can be a very different thing.

Or use it to improve your current property to generate rental income immediately with a MIL or backyard cottage.

What the city has a problem with is an investor purchasing the property renting out the main house and also doing a short term rental in the onsite cottage or other swelling.

Conrad welcome to biggerpocketsLet me know when you’re practicing in the cheese kingdomIt always best to have extra attorney / accountant contactswww.biggerpockets.com/renewsblog/2012/12/19/keyword-alert-system/

etc).If you have $X to spend on a house, you might get a bigger one on the Avenue versus a small cottage in Ojai, but do the math to see how much of the mortgage your future renters would cover, and take the "value" of where you want to live into consideration.Good luck!