Unless you want to continue having negative cashflow, you pretty much have to raise rents.

I recommend searching "arbitrage" here and reading any/all of the hundreds of general threads about negative elements of arbitrage.

Hey everyone,I’ve been diving into Chapter 1 of The Multifamily Millionaire, Volume II: Create Generational Wealth by Investing in Large Multifamily Real Estate by Brandon Turner and Brian Murray, and I wanted to share insights on one of the most important concepts: Crystal Clear Criteria (CCC).When scaling up to larger multifamily investments, having clear and specific criteria is critical for success.

Make sure you budget for the negative year.

The cost to build will be significantly more than the amount of “value add” of an ADU putting you in a negative equity position.

I understand your concept, but it appears the terms, lender and investors, are being used interchangeably.

But I will be honest, the rentals I have been added the last 2 years here in DFW have negative cashflowed.

Not sure how many PMCs you've had bad experiences with, but we'll take exception to:"Then do a thorough research on tenant applicants (note: leaving this to a PM may be hazardous to your financial health)".BP seems to have more threads about screening mistakes by DIY landlords as opposed to PMCs.Now, if you'd have mentioned Maintenance, you'd get no argument from me:) Even the PMC industry acknowledges maintenance as one of the biggest challenges.Rereading my post, I kinda see how I sounded negative toward PMs.  

This initial negative equity position consumes the initial cash flow.  2) the addition of the adu makes the property multi family and likely makes rent control apply.  

In some cases, after running the numbers, I’ve even faced potential negative returns, causing me to miss out on promising deals here in South Florida.That brings me to my question: I currently own two homes—one is my primary residence, and the other is a rental property.