I guess it's like apples risk vs. oranges risk: recently-built apartment complexes are apples and involve risk (the construction defects, the stress Class A experiences during an economic downturn, etc.) and value-add/renovation type business plans involve oranges risk: you won't probably see any construction defects, but you have more vulnerability that the renovation plan + improved operations plan + repositioning will not work as optimally as originally hoped. 

I think your examples in the other replies, lower in this thread, speak to motive/intention....yours is pure and true to the pursuit of knowledge, and the one i'm complaining about is not...and their conduct/style/motive/intention creates a less than optimal environment for me to maximize the value from my time spent on BP....IMHO  

I’d say talk with a few different mortgage brokers to get different ideas of how you can optimize your buying power to work for you!

With the right resources, getting started with business credit, rising to the top, and optimizing performance is as consistent as clockwork.

What programs/tools/resources have you found helpful for things like:Finding areas that are most likely to increaseFinding the best size or room numbers to optimize profitAny other areas that would be good to knowThanks in advance

In that situation, the dwelling unit is never disposed, and that is the essence of the dynamic you're trying to examine.Now, with the situation at hand, you're talking about a lot more than just scrapping the mobile home, so the optimal answer given the facts and circumstances would depend on a conversation with a tax advisor who excels in this area. 

It’s not a bad decision giving everyone you have stated but it’s certainly not optimal either.

Selling the existing SFR sounds like a pretty sub-optimal idea now :) @Austin Largusa investing out of state is absolutely on the table!

To be honest, 30+ minutes on a dirty CTA each way is not something I’m willing to do, I work 70-80h a week (that’s my “little sacrifice” already) so it is important to keep my daily routine optimized, and walking to work from River North/West Loop is not negotiable.That might as well mean that it’s better for me to keep renting rather than “investing” in an overpriced condo. 

.$3,000/month x 12 months = $36,000 annual ADU rental income$36,000 income – $5,400 expenses = $30,600 net annual revenue$30,600 revenue / $225,000 investment = 13.6% annual returnHere are some things to consider with regard to ADU amenities to optimize rents:Storage: ADUs are generally pretty small and usually don’t include a garage, so it’s important to include areas for tenants to store their belongings.