Pros - guaranteed rent, tenants stay longer on averageCons - more mgmt needed (lease violations), they tend to not take great care of properties (increase maintenance expense or deferred maintenance)

You are procrastinating on the smallest of things which means you may lack the confidence to do what you are planning to do.

Typically its done for open space or use for community property (ie. fire station location or other county use) and typicaly would assist in increasing tax base.  

When we create our business plan, we also include our exit plan.We'll only proceed if we can clean this up, acquire new tenants at higher rents so we can increase our NOI, which in turn should reflect our cap rate and profits.Since this asset class is new to us we will tread cautiously.Scheduled to preview tomorrow. 

This was in a middle class neighborhood and I get why that is less risk however with apartments increasingly including laundry, I would imagine demand lessening in that location. 

Quote from @Devin James: Quote from @Andrew Syrios: “If you want to increase your success rate, double your failure rate.”- Former IBM CEO Thomas Watson This is my first time hearing this..

Despite the storms in W FL we are seeing YoY rate and occupancy increases 24-25.  

It is amazing how many times I have seen the cash flow represented as rent - PITI and to compound the issue they did not realize the ADU would increase their property tax.   

I recommend you do this annually to adjust for utility increases and other variables.

My spreadsheet also includes FMV of every property so I can monitor appreciation, year over year comparison of tax & insurance increases, current rent & last increase & last amount, etc.