Build an ADU on existing property or purchase Turnkey (s)?

[Michael Wilson]

I have about $150k to start investing. I have been hunting property "locally" for some time. I live in the north west suburbs of Philadelphia. My interest is buy and hold for long term cash flow. I have offered on 11 properties with no closings. Reason being is most properties require extensive repair, and I hesitate to get overly aggressive on offers for a thin margin net cash flow of $100 or $200 per month. I have turned to Turnkey, actually have an offer in a property now. I am starting "light" to test the process and experience. In parallel I have had this ongoing thought of building an ADU on my primary residence property. I have enough land to build a detached ADU, zoning is okay, and since this is my primary residence I feel comfortable managing the process because my time is used efficiently (no travel or remote management). My mental struggle lies with dropping circa $150k constructing the ADU vs dividing into 4 or 5 down payments for turnkey properties. I conservatively think the ADU would cash flow $2100 per month. It would consist of a 1300 square foot apartment and 3 climate controlled garage bays ( each 28' by 12'). Thanks all! Excited to hear thoughts.

mike