This negative equity position is one of many reasons that adding ADUs in a single family zone is not typically a good RE investment.OP whatever you decide to invest in, make sure you do thorough and conservative underwriting. good luck You’re right in that the level of underwriting I presented wasn’t institutional level - but for your average person just starting out, institutional grade analysis often makes the thought of investing overwhelming.

The volatility of Austin's RE market also presents challenges.

I've been surprised at properties that have passed conventional financing though...and even FHA....also, one could present 2 offers to seller--one for a cash offer and one for seller financing (at a higher price of course). 

My opinion only 2 cases make sense for the seller 1) they have few options and this presents the best means to get out if a bad situation.  

In the article it included a link to a presentation by ATMInvestors.com. 

With no experience, you probably would never be presented with a good deal. 

Many of my decent wholesalers present failed flips for someone else to take over.  

The Shadow Ln property presented a high-demand location and a competitive purchase price.

For investors, this presents a niche market to target families seeking multi-generational living arrangements.Things to Keep in Mind:SB 9 projects must comply with local ordinances, which may include design and setback requirements.Properties in historic districts or areas prone to environmental hazards may have restrictions.Lot splits under SB 9 require that the owner occupy one of the parcels as their primary residence for at least three years.ConclusionSB 9 represents a significant shift in California’s approach to zoning and housing.

I always cover my experience, the brokerages experience, and expectations with communication - 9 - 5, M-F, 24 hr turnaround during business hours, and the owner can reach out to me personally when the team isn't present.