Instant reports might be fast, but they can leave you with gaps and costly tenant risks.

But that neighborhood is not good and my parents are telling me I’m crazy for thinking about risking all my money in a dangerous part of town.

You need to risk adjust your return based on the above comments. 

I’m almost 3 years from construction, which is when my tax exemption on the improvements expires.Now my question is, if I turn the SFR and DADU into legal condos, is there a risk that my original mortgage on the SFR a conventional one could be called? 

In the end, my portfolio gives me better returns because I accept the risk of having some deals give me marginal returns to be able to get the massive returns from the home runs.

If will be more work for me which I am willing to do but is it worth the headache and risk ?

For pre-2022 loans with lower interest rates, direct transfer to an LLC could risk triggering acceleration and result in refinancing at a higher rate.

Pros: Diversified risk, economies of scale, and better cash flow potential.Cons: More management, financing can be trickier, and a larger upfront investment

✔️ Lower Vacancy Risk: Even if one tenant leaves, income keeps flowing.Is anyone actively doing pad-splits right now?

@Daniel McDonald I do agree house hacking does mitigate some risk!