Sometimes the contractors are trying to extract as much money out of you as possible.

I will list various reasons later in the post.Value add properties historically produce the best returns and can produce infinite return if you are successfully able to extract all your investment at refinancing. 

My purpose is to reduce the fear associated with an out-of-control legal system set up on extracting assets through Legal Extortion Rackets by protecting your wealth from such attacks, while leaving you with both control and beneficial use of your assets.

It is similar to the work of a BRRRR, but due to no likely extraction of investment the returns are far worse.The price of ADUs varies depending on numerous criteria, but the Texas estimate is way low for So Cal. 

If the investment (or at least most of the investment) will be extracted and the tenant will be paying the mortgage, the cost is only important as to the value added by the renovation. 

I historically have achieve infinite return on most of our BRRRRs (meaning all financial investment was extracted).  

The negative position can consume years of cash flow before it is recovered and the first true return is achieved.  2) ADUs having value significantly below the hands on costs of the ADU addition means that there is no easy way to extract the value. 

Once I got to about 7 I contracted  with a CPA who now also does my taxes, to clean up my QuickBooks and organize things in such as  way that I could run reports and extract the information I need from it.Probably when I get to 20 I'll hire him to keep the records and just give me reports as I need.  

So flip, but selling costs and taxes will kill the profit making the flip not worth the effort and likely there are better investment options.I will buy a property if the property is way below market price or has a great value add, but I am not expecting to refinance it any time soon to extract anything.  

If there is $800 in scrap then the contractor will want to realize some value for extracting that instead of simply landfilling the entire thing and saving multiple hours of work.