It is typical for them to be bad.

What’s the typical LTR for this size property in the area?

@Loan NguyenRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

@Michael Izbotsky In community property states like California, assets acquired during marriage are typically owned equally by both spouses, which may complicate transferring jointly owned property into your sole-member LLC.

The if is the challenge as ground up ADUs typically cost more. 

You typically don't want to split up construction and engineering services/planning here, but we did this to let us see how well we work with the firm.It's probable, if we work well together, they will also be our GC.

Typically $2m+ homes don't cashflow due to high taxes, high insurance rates, and low rental demand. 

Here’s what I do with my rentals:I either have tenants split the utility bills or include a clause in the lease that states if the gas or water bill exceeds a specific amount ($X), the tenant will be responsible for the overage, provided there are no leaks or other infrastructure issues contributing to the high usage.To determine this $X amount:Water: I take the highest water bill I’ve had over the past year (excluding periods where leaks occurred) and add about $15 to account for small fluctuations or potential increases.Gas: For gas, I calculate the median bill during the winter (when usage is highest) and the median bill in the summer (when usage is typically lowest).

I rarely have a balance over $20k, and more typically $10k on my personal ones.

With $50k, you might be able to get started using an FHA loan, which typically requires a lower down payment, as long as you’re planning to occupy the property.