Make sure the lease spells out a hefty penalty like all new paint and carpet etc - in reality most of the time an Ozone treatment wil take care of it. 

@Mark DotyWanted to share with you a great way to tap into the equity built from your ADU.The problem today: most appraisers used by traditional lenders would give ADU square footage a second-class treatment than the main house (as some of your mentioned above) since there aren't that many comps and they're trying to be conservative.However, you can consider taking out a HELOC/doing cash-out refi through Figure.com (HELOC up to $250k, Cash-out refi up to $1M).

The worst problem is that it's just about impossible to buy shrewdly in a city you don't know well, and you're not going to get the best deals and treatment from people who don't know you and see you as a long term customer. 

Two different treatments.  

The best time/highest price has been in these circumstances:1) Property is 100% leased 2) Has a lot of the lease time remaining (i.e. the students have just moved in) 3) When it is in the best *visual* condition2 and 3 usually coincide together. 

You just won’t get the tax-free treatment on the sale. 

A couple times of this treatment and rent is on time or the tenant moves when the contract is up.

For example, if you provide free laundry, prepare for your tenant to do some laundry parties or start a laundry business out of the house.Property managers may also not have the best treatment of the property since they understand the property would be in a lower value area, so I'd prepare for some excuses such as damage/poor screening not being their fault because the tenant pool is not good enough.That being said, you can still make a lot of money in lower value areas.

I hardly needed any other money since the 1st building, constantly leveraging off that equity, and then the equity of the 2nd, 3rd, etc... to eventually now, buying $1.5 Million buildings all cash in LLCs.I'm not saying that this will be your future, but it's a very compelling future if you visualize it well.Don't forget that if you used a fixed rate Mortgage, even if your property does not appreciation, the Mortgage balance decreases over time, and your equity builds up.That equity then seeds capital to your next deal.

It won't get you any special treatment, but we are friends and it will help you break the ice with him faster.Good luck.