My neighbor is renting her Jr.attached ADU: 2 bedroom, 1 bathroom, 825sq -furnished- $2500/mo (utilities incl./ current tenant renting for 6mo).LOFTI have plenty of land for detached ADU /their own yard, driveway & entry with the goal of a 1 bedroom/1 full bathroom downstairs & a bedroom/powder room upstairs <so 1 & 1/4 bath>...

Have a ton of experience in the rental market, and ground up development including industrial and retail.  

Out of curisosity, are you considering utility reimbursement portion as "Owner making money?" 

I have a very nice STR in Four Corners and the last 2 years we've been at 50% vacancy in our busy seasons because so much new product is on the market and there's still a ton of legacy owners renting out for $99/night.

The key is finding a reputable house-moving company in your area that can handle permits, utility disconnections, and logistics.

Utility Costs (Water, Gas, Electricity):- Paid monthly by the tenant unless included in rent.

When there's tenants already occupying the property, there's often times different leases that were signed among the tenants.Additionally, renting by room usually sees higher tenant turnover which in turn causes more work for the PM.Other challenges to consider:- Disputes/conflicts among tenants (different personalities if a tenant doesn't know the others prior)- Occupancy limits- Splitting utilities (what if someone uses more water?)

There's a lot of would-be investors in the Bay Area sitting on a ton of equity, but they have killer 3.5% interest rates from 2012 that they don't want to let go of.

All utilities are at the street. 

It felt like a no-brainer for the value of the land, but being able to utilize a traditional mortgage because there was a clean yet simple 3 bed 2 bath house on the lot made the deal even sweeter!