My debate is this.As a general statement the rental property cash flow here in Los Angeles is VERY challenging to find.I am looking to buy a property with a detached garage and convert into and ADU for helping to offset to mortgage.Crunching some numbers up on $1M property with and ADU assuming (rough numbers) main house brings $5,000 and the ADU $2,000 I’ll still be negative in the deal after all expenses (vacancy, capex, repairs etc…)However if I will use it as a Sort Term Rental it will be cash flowing beautifully.What’s your take about buying negative cash flow long term but counting on AirBNB to bring in the positive cash flow?

Converted it to a rental in 2002.

I have a long term rental (SFR) which I converted to an Airbnb in October 2019.  

The plan for that is either rent out my room or convert it to a sober living facility.

However, I have found in some of my converted units that are the same structure it is just too difficult because the line tie together in different places.

What I'm really doing is creating a "workshop" space that's part of the house that can be used towards a business write off, but can also be easily converted to living space with plumbing/wiring already installed in walls/floors.

The unit was wrecked but I was sold a rehab project that would be much more expensive so that the unit could be converted into a bigger living space; the idea being that we could get more rent out of it (close to $1200 vs. $800/mo).The rehab was supposed to take ~ 3mo.

hi everyone, thank you all SO much for your time. you've given me so much valuable insight.it seems like everyone agrees that the sleeper sofa is not a bed. helpful insight + agreed, i wouldn't want to sleep on one.synthesizing all of your great feedback, i have a follow up question:i was asked why i don't put beds in all 3 bedrooms. i am trying to balance the utility of this as somewhere that i live part time, with the utility of the rental. for my own purposes: bedroom, guest room + office. i do a lot of video calls for work, so need an office/neutral space.initial thought:maybe a quality trundle bed in 3rd bedroom that is daybed for office, + converts to sleep space for kids when it’s a rental.

Purchase price: $685,000 Cash invested: $250,000 This was a cash cow deal made up of an old converted schoolhouse with two other buildings along side it.

It includes a primary residence, as well as a detached garage/storage area in the backyard that I am looking to convert into an ADU (Accessory Dwelling Unit).