I'd personally never take capital that I am paid to manage without committing my full-time effort to the situation and putting a majority (I reserve the right in the future to make this 1/3rd of my position) of my wealth into the situation. 

As a reminder, listing tenure positively impacts your performance on our marketplace.

The cost to build will be significantly more than the amount of “value add” of an ADU putting you in a negative equity position.

By the way - for the same reason the 1st position lien holder will be uneasy with 100% CLTV, as a buyer I would be uneasy with it as well.

A national buyer would review the BPO and maybe do some brief online research, but would not typically not know, as in your example, about the sewage issues or extent of interior rehab needed.

Rentredi seems to do it all but the reviews for it say there are a lot of bugs and a lot of hidden fees.

Hi Allen, that’s an exciting position to be in—$500k gives you a lot of options! 

I’d also love to hear your predictions for how the real estate financing landscape might shift this year and how you plan to position yourself for success.

@Jon Martin  I agree and in short term its just not worth what you will get in reviews for something like this. 

The way I see it, the positives are that the municipality takes the burden of finding the tenant, rental agreement with the municipality is for are for at least five years (this might be a negative for some) and you'll be exempt from both property and capital gains taxes.