🏡💥 Tesla Cybertruck ExplosionA tragic incident occurred outside the Trump International Hotel involving a Tesla Cybertruck explosion, resulting in one fatality and seven injuries.

They recognize the buyer can destroy the seller credit, but they are in such dire straights that the risk is justified 2) the seller knows the buyer and has so much trust in the buyer that they have every confidence that the buyer will perform on the loan.From a buyer, it provides a means to get an interest rate from NLT q1 2022 that is a fraction of today’s rate.  

The margins are tight which increases risk.

Thanks Dennis, I think you're right that planning for a more conservative return would be a good idea.I re-ran my numbers at an even more conservative level:Lower ARV: $800,000Lower income levels (I'm assuming it will take a couple years to get up to full potential income, but giving myself 3 years was a conservative estimate):Year 1: 50k (NOI $1,000)Year 2: 80k (NOI $31,000)Year 3: 100k (NOI $51,000)My ROI numbers come out to:1% (year 1) 46% (year 2) 76% (year 3)This scenario seems like an acceptable risk to me, when the upside seems far more profitable.

Most value adds involve work   Some require specialized knowledge.Here is a list of why adding ADUs in my CA market is typically a poor RE investment:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

However, my work involves a lot of late nights and it’s starting to take a toll on me, especially with two young children.  

I’m weighing two options for our housing situation and would greatly appreciate your advice, given the complexities involved.1.Renovate and Buy Another Property•Invest to renovate our current home adding a bedroom to the house given our family outgrew the house.

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

The cash flow portion of real estate is often related to risk and sweat equity, which is a different aspect of investment.

this deal seems like a lot of risk and I am interested to seeing how it turned out.The tenants were a few weeks away from the foreclosure auction.