Total PITI : $2,800 p/m ADU: Rents : $1900 p/m Home : would rent for $3k per month Potential Gross cash flow: $2,100 per month Purchase: $500k Current ARV: $900k Can these numbers be achieved today with high interest rates and high prices ? 

Any valuation must evaluate the expected value after value add as well as the risks in achieving that valuation.  

My friend wants to include me in on this so we can both achieve financial freedom together.The plan currently is to take out a personal loan together for the $20,000, put in $5,000-10,000 worth of work into the property to make it livable as soon as possible, move into the property ourselves so we don't have to pay rent anymore, and then refinance as soon as possible.

@Damion Brown You can definitely do a nice project in this budget and achieve $1600-$1900 rent.

It's fantastic that you have clear long-term goals to build your real estate empire and achieve financial independence.Wishing you a successful and fulfilling real estate journey!

From securing the best financing options to planning for future growth, my goal is to help you achieve financial success through smart real estate investments as a loan officer.

I believed this forum to be people that share ideas and experience to help other achieve financial goals with real-estate.

It truly is the best way to achieve generational wealth. 

Here’s a detailed breakdown of these two types of markets and the factors that contribute to each:Cash Flow Market, a cash flow market is one where rental income exceeds the expenses of owning the property (mortgage, taxes, insurance, maintenance, and property management), resulting in positive monthly cash flow for the investor.Key Characteristics:High Rental Yields: Properties typically have high rental yields compared to their purchase prices.Stable or Slow Appreciation: Property values increase slowly over time, if at all.Lower Property Prices: Generally, property prices are lower, making it easier to achieve positive cash flow.Higher Rental Demand: Strong demand for rentals due to economic factors, demographics, or local employment conditions.Factors Contributing to Cash Flow Markets:Economic Stability: Stable job markets and steady local economies that support rental demand.Rental Market: High percentage of renters compared to homeowners.Affordability: Affordable property prices relative to rental income.Local Policies: Landlord-friendly laws and regulations.Appreciation Market, an appreciation market is one where property values increase significantly over time, offering substantial capital gains upon sale, but rental yields may be lower, resulting in lower monthly cash flow.Key Characteristics:High Property Value Growth: Significant annual increases in property values.Lower Rental Yields: Rental income may not cover the monthly expenses, leading to lower or even negative cash flow.Higher Property Prices: Generally higher property prices, which can make it harder to achieve positive cash flow.Strong Economic Growth: Rapid economic growth, population influx, and development.Factors Contributing to Appreciation Markets:Economic Boom: Strong local economy with job growth and high-paying industries.Population Growth: Influx of people moving to the area, increasing demand for housing.Infrastructure Development: Significant investments in infrastructure, amenities, and services.Desirability: High quality of life, good schools, and attractive neighborhoods.I hope this information finds you well. 

Can you please share more of what you're looking to achieve?