Consistent action is the name of the game when it comes to achieving success. 

Some/many lenders don't like a 2nd mortgage behind their first (like the skin in the game), however there are both bridge or permanent financing options out there allowing you to leverage anywhere from 90% CLTV - 100% CLTV, but don't expect good terms...

Having the ability to offset their mortgage with an ADU would be a game changer. 

For those interested, a combination of mortgages with no “due on sale” clause, mortgage companies loose due diligence, and title insurers willingness to “turn a blind eye” to practices that wouldn’t pass scrutiny now, resulted in tactics like the “second mortgage crank” which not only allowed investors to purchase properties with no money out of pocket but allowed investors to actually walk away from closing with “cash in their pocket”.

You pay for the basement reno out of pocket and cash out immediately...instead of waiting for 6-12 months

Been listening to bigger pockets for about a month now (literally everyday, at every moment I have spare time LoL) and am learning a lot.

What tools or strategies are you using to stay ahead of the game?

Welcome to Bigger Pockets and love see local folks getting into real estate investing!

Hi, I'm a long time Bigger Pockets fan and a financial advisor/CFP and former tax lawyer by trade.

However if you didn’t calculate in at least some percentage of the rent for vacancy, repairs, and CapEx then eventually things will happen, such as a vacancy or a repair being needed and you will be out of pocket a much larger amount of money than just your $400.