This will happen in a market with balanced supply and demand, in a monetary system like the US, with fiat currency targeting 2% inflation.- In some markets, that are growing quickly, with great jobs and lots of inbound migration, this could be a little higher - like 4-5% per year over long time periods as demand outpaces supply.

This initial negative equity position consumes the initial cash flow.  2) the addition of the adu makes the property multi family and likely makes rent control apply.  

.- When I called the brokerage admin to let them know I had quit the team and to change my status to solo agent, they said their system shows me as a solo agent and that the TL never submitted paperwork to add me as being part of their team.

If it furthers our goal of a couple acres and a home in Texas in 8-11 years without being a slave to the system, I’m all ears. 

I plan to invest into smaller multi-family 2-5 unit turnkey properties.

This would be more of a multi-family buy and hold play. 

People will rent homes in that area because they cannot yet afford to buy, but hope to buy a newer home in the future and keep the kids in the same school system and around their same friends.

For the cost I’m getting quoted for new construction ($110-190,000) I can buy another multi family property which will cash flow more than just the ADU ever will.

Investment Info:Small multi-family (2-4 units) buy & hold investment.

I have worked with a number of investors in the last year that are happy with the cashflow on smaller multi fam in this area.