Quote from @Darian Sanayei: Quote from @Darian Sanayei: I’m trying to build a ADU in my backyard.

Especially since we have lots of pools. 

Having a tenant in backyard will hinder some privacy.

Purchase price: $420,000 Cash invested: $120,000 5 bedroom 2 bath property with pool, shed and playground in the backyard.

Seems like a hassle to remove cameras from inside every time a guest is coming.Outdoor cameras are good for near the front door but otherwise keep them out of areas people will gather or near pools/hottubs.I have the Eufy cameras (solar) near the door and Schlage Connect Z Wave locks.

Alternative Revenue Streams for Unique Property Features•If your home has unique features (large backyard, pool, modern design, or open space), consider listing it on platforms like PeerSpace for event rentals, content creation, or small business use.

My opinion on this is split between two answers:1) invest in your backyard.

Purchase price: $465,000 Cash invested: $80,000 Checkout my Airbnb here: airbnb.com/h/madeirabeachoasisSalt Water Pool & Hot Tub: $60,000Tiki bar with electrical hookup: $3500

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

I personally believe you should start in your own backyard and find a way to make it work.