What kind of hold period do you need to achieve the 16% IRR  while you are earning the 7% monthly rate?  

I'm keeping my eye out of a 4plex to help reduce my, probably unreasonable, fear of vacancy risk but keeping my options open just to get started so a 2 for got my attention.     

Bonus depreciation was reduced to 80% this year instead of 100% which means it's still pretty good.

The current owner reduces their risk. 

It also matters, depending on the locality, if you live and/or work there and what type of income you are earning.

Hey Kylie,Your question hits home for a lot of us trying to make the most of our hard-earned money.

It includes energy efficient appliances as well as a gas fireplace in the living space.The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

I do get a lot of “push back” from both real estate and non real estate people on it due to the negative (sometimes earned) connotation that comes with it.If you made it this far congrats.

If I'm not getting many inquiries I reduce price aggressively.

Having a plan to reduce the price or offer incentives can help get tenants in there faster, which is key to keeping your cash flow steady.Overall, you’re in a good spot with that ADU, and with a bit of flexibility in your strategy, you’ll have options that can really work for you in both the short and long term.