I'm confused at to why some folks on here are saying that adding an ADU will lower my property value.

I just saw today that I might finally have a second tenant placed (Both to pay $1250) but I’d still like to fire her and hire someone with guarantees around tenant placement and that charges a lower percentage.

: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.

In a slow market homes sit and rot, they are on the MLS forever and the longer it sits, the lower the price goes to find the sweet spot for just the perfect buyer.

. $700/month HOA fee may deter buyers, elongating your resale timeline, and could push your ARV closer to the lower end of your range.

FHA loans may allow for lower down payments if the property will be owner-occupied.Owner Financing or Creative Offers:Explore properties where sellers are open to owner financing or lease-to-own agreements.

You'll have to read the details in your PPM and Capital Call notice but generally you send in more money to maintain or decrease, but never increase, your original position, It's not like putting money into a losing stock where you now own more of the company for a lower average price.You're far from the only person this has happened to.

This implies residential units can be built at lower costs and provide better return. 11) adding an ADU to SFH can make the SFH fall under rent control.

CA has property tax rate that is a little lower than the median.

The shares are represented by certificates sold to investors for the purpose of maximizing value and lowering risks of pooling payments on fixed assets, which allows for increased liquidity, thus aiding the total market.