Also, be sure to check with the section 8 agency managing the tenants - sometimes if you pass on an additional cost like that they will no longer be eligible to live there if the rent and utilities exceed what they were approved for.

Anyone can live anywhere they want if they have the money, and sometimes houses are bought and then rented out without much background checking on the people moving in.

But make sure to check out the BP book store here also.

However, after accounting for long-term capital gains tax and other expenses, you would be left with $150k which is important to budget and account for.

@Zen Lenon, I'm not dealing with HOA's at scale but I agree that MTR owners need to check their HOA rules to make sure the strategy works for them.

To find reliable contractors, ask for recommendations from other investors, real estate agents, or your local hardware store, and check platforms like Angi or Thumbtack for reviews.It’s best to bring a contractor out after the inspection so you have all the details to discuss.

It has to be an addition.I would double check because maybe the workaround is reinforcing the garage and building above it.We lived in our studio ADU for two years before we moved into the main house.Best thing to do is talk to an experienced lender.

Anybody who wants to know the real ROI and occupancy figures can check on Airdna.

Trustworthy property managers can make or break a portfolio, and I’ve found that vetting them carefully—checking their reviews, local reputation, and how they handle tenant retention—is crucial.

Future land appreciation in this area might outweigh any tax benefits from buying in other areas, with a better (tax-wise) ratio.Before pursuing your plan, talk to a real estate accountant to figure out if you can, in fact, benefit from cost segregation.