We have one rental with 4 doors for the past two years.Hi Ellie, That quote for a townhome sounds a little high but so much depends on each individual property that it is best to get a good engineering-based cost segregation study which is the IRS' preferred methodology.

Just a different methodology.

Location: Marin County Zip 94947Option 1: Detached any sq ft (476sq studio ft or 756sq ft are my comparisons; about $40k more for the larger one)Option 2: Garage conversion on 326sq ft (rickety garage that would probably need to be torn down and rebuilt)What is an effective methodology for comping rents when I can't directly compare to other ADU's?

Thus, the next challenge and frontier for many DSCR lenders seeking to serve the growing number of real estate investors pursuing this strategy is to cement a qualification and underwriting methodology to properly qualify MTRs and accurately project their revenues.

While it's true one can find plenty of market rankings out there in the internet ether, every list has a different set of conclusions based on varying methodologies that weren’t devised with a mind to individualized investment strategies.

How much and through what methodology.

If you pass, take your learnings and move forward and continue to follow the methodology that got you to this point bc it will get you a great result! 

I would not factor this element in to my equation if I want to invest here or not.The basic opinion here is to follow the same methodology that you work with any town of this size and it will show you that it is a reasonable area to invest in. 

@Steven Wilson Be sure the company you are considering does engineering-based studies, the IRS's preferred methodology.

There has to be some methodology for finding that old abandoned farmland/house that is wasting away that I can refurb.