Though it may cash flow well based on their current debt service, when you compare the income it produces to the equity they have is it actually even a good investment for them from an ROI perspective or would they be better off liquidating and redeploying?

The investor would buy an ugly black box that produced money if it was the right price.

If you are prepared for the costs involved and the modifications needed to the property to make the basement unit conform, the pay off of creating an extra rent producing unit is huge. 

I think it is just as indisputable that higher cost markets will produce greater value add via a proper rehab.Next question is does initial cash flow have any correlation to actual cash flow over a long hold. 

I'm a local real estate broker, investor, and manager (100+ rentals, mostly Airbnb/STR and multifamily).House hacking is a tried-and-true method and in Sacramento you can produce some meaningful income while enjoying the appreciation and tax benefits of owning real estate.

This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

Common area with linked ensuites. tags: senior, elder, shared housing, tiny homes, student housing, small homes, affordable, 

Many of them treat the home as their own and stay long term.Multi's are nice because they generally produce more cash flow, but do require some extra attention.

At RAD Diversified, we offer investment partners the opportunity to invest in income-producing farms and cash-flowing properties like residential & multi-family with substantial value-add opportunities.

If you are using it to buy a turnkey property which needs to produce cash flow to be considered a viable deal how does buying turnkey(Little to no cash flow) combined with HML(High interest only debt) make alot of sense financially?