The issue is building a single small residential unit is some of the most expensive development.Here is a list of why adding a single ADU in single family zoned areas in my CA market is typically a poor RE investment:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

I'm in the small Eugene market, which in terms of industry and jobs offers no real reason to be here.

Quote from @Marc Zak: In the market where I live (San Diego), appreciation has been strong and many predict it will continue to appreciate in the long term.However, with current interest rates (6% at best) and property tax (2%), the annual cost burden is 8%.Am I correct in saying that appreciation has to be above 8% annually (plus whatever my maintenance and vacancy costs are) for me to make any money in this scenario if the property is cash flow neutral?

Even if you get a great deal that is 20% below market, appraisers will typically be anchored by the last sale price and you may be stuck not being able to pull out as much cash as you need to pay off the HELOC.

Quote from @Jake Gasperi: I’m new to wholesaling and looking to learn more about the Des Moines, Iowa market.

Look at their marketing strategy.

Here’s our OPINION for the Metro Detroit market (use as a template for your target area!)

Until the lease ends and then the legal notice time in your market has passed.

I am convinced because listings sites pick markets they think make them more money to advertise.

I have a lot of good information on the KC multifamily market that I can send you.