There are not many ADU comps in my SoCal area YET.

So $132k all in, or if I wholesale it - $142k or so.

Have only lightly looked into it as we have been so heavily focused here, but also because we haven’t had a connection.

I've been thinking about ADUs as well, so I will keep that as an option.

Technically we should call it basis reduction, but the end result is the same: he owes tax on the entire insurance plus appreciation plus depreciation.

And rarely will you net as much or more from an investor than you would from  listing with an agent.Interveiw agents commissins are negotiable so negotiate those.. and these are very simple transactions so any competent attorney can reveiw the contract etc..

My interest rate and purchase price wouldn’t allow for positive cash flow unless I charged an unreasonable rent—or put about $500K toward the principal, which isn't ideal.I’m a high earner, so I’m weighing my options:Take the loss ($60K-$100K), buy another house, and chalk this up to a hard lesson learned.Refinance, put more money into it, and rent it out long-term—even if it’s not immediately profitable.Invest my money elsewhere and try to make peace with staying here for several years or just move.Would love to hear thoughts from anyone with experience in real estate, financial strategy, or noise mitigation.

There are no taxes on the sale of real estate in an IRA so there’s no application for a 1031.

If you're talking about building an interior wall to create a bedroom, this could work so long as you aren't significantly reducing living space compared to the competitive rentals. 3 bedrooms with a tiny living area could cause problems.

What you've done in the past is no longer working, so what are you going to do differently going forward?