Here’s our OPINION for the Metro Detroit market (use as a template for your target area!)

Are you looking for max cash flow for NOW?

@Dan BlackHey Dan I can't agree more with your statement.

If you cannot find comps to provide a clear valuation for the ADU addition, underwrite for a poor valuation (no more than 50% of the hands off ADU addition costs).  

@Craig Daniels -while I do agree with others that 30% down for $175/mo cashflow is not a good investment, I will present a slightly more positive response.

If your goal is to attract high quality tenants with consistent rent increases there are city/towns that have more favorable laws that I would advise you look in instead. 

In hot markets, some wholesalers and investors use 80-85% of ARV (minus repairs) instead of the typical 70% to stay competitive.A few tips:1.

Chalk it up to a learning experience for when you look for your next opportunity.

On the other hand, if you are looking to do a more heavy value-add with renovation you may look for bridge or private money options.

Most real estate investors fight over the same overpriced, outdated properties—when they could be building for less and making more.I’ve been in development for years, and I can tell you firsthand: new construction is one of the most overlooked ways to generate six-figure profits.Here’s why:Build for WAY less than market valueSkip bidding wars and competitionRent or sell brand-new properties at top dollarYet, most investors avoid new builds because they think it’s too expensive, complicated, or risky.