A vacation rental could generate higher returns but requires more active management.

County, State and Federal rights supersede the craziness that some random liberal city council & Obama impersonator try to pull. 

Where we expected to gross between $30-40k, we are grossing $60k and generating around $2000 per month in cash flow.

Or we gradually perform high-quality updates for a live-in flip, then roll the equity into a new home.Regarding rental income, we aim to boost income, lower our effective tax rate by generating more low tax-drag income with rental income (since there’s not much we can do to lower out W2 tax bills) and have retirement cash flow.To compare the financial impact over 10-20 years, we want to analyze renting versus flipping.

Maybe not for my generation, or even a youngster like @Jay Hinrichs, but for the bitcoin investing/trading generation, it’s probably something they’ll have no problem going with.  

I ran my own custom proforma for a bank loan using the asking price that would generate a cap rate over 10% and CoC just under 20%.

Hypothetically, if I found a property with strong rental demand, the income could cover loan payments, operating expenses, and generate a modest positive cash flow.While this example involves upfront risks, the idea would be to leverage my father’s expertise as a contractor to minimize renovation costs, boost the property’s value, and create a long-term asset that appreciates over time.

During this time you are not generating any return from the money invested in the ADU.

Aside from downpayment, you want to have a solid emergency fund in place, something that can cover unexpected repairs, vacancies, or any other random costs that pop up.I’d also recommend saving more than you think you'll need and keeping a close eye on your expenses.

They also get a small bonus on every review they generate.