Hi Vida,Based on your goals and budget, here are some suggestions for building a small home with a business space in the Atlanta, South Carolina, or North Carolina areas:Building options:Modular homes: These can be a cost-effective option, allowing for faster construction and potentially lower costs compared to traditional building.

However, since interest rates jumped up in 2022, new construction starts have dropped a ton in the area, so within the next 1-3 years the amount of new supply coming into the market will drop a ton, and we should see demand outpace supply again and start seeing organic rent growth come back. 2015-2022 you would see 3-10% organic rent growth per year depending on the property and submarket. 

Material Participation in a Real Estate Trade or Business.This is pretty straightforward but you must materially participate in a real property trade or business, such as development, redevelopment, construction, reconstruction, acquisition, conversion, rental, operation, management, leasing, or brokerage.2.

The construction cost of the units is also relatively straightforward.

I am thinking about putting together a tour of 2-3 ADUS in Pasadena CA that are under construction or recently built to get a better sense of the ADU building process.

Hey @Henry Clark quick question, if I went the route of purchasing the land outright and then having the bank help finance the construction, wouldn't they prob require me to have a professional feasibility study? 

I’d recommend reaching out to a local architect or design-build firm who has experience with both home additions and ADU construction to help bring your vision to life.

Fortunately, with my job, I do have people there to discuss it with and learn from, but I am still excited to expand that knowledge base further than my immediate circle.On my personal real estate journey, I am currently under construction on a new-build triplex that I'll be house hacking.

DSCR won’t be the product you would use for ground up construction/ new build.

This is a multi-family investment for a project where construction is almost complete.