-Build a strong network in Detroit of real humans over a period of months, buy a better deal, hold it for 10+ years, weather early storms:  better chance for success.Even on that latter deal though, are you going to cash flow in month 1 or year 1 or even year 5? 

Hi Eric,Great question—estimating operating expenses can definitely be tricky, especially for items like maintenance, CapEx, and make-ready costs that vary widely between properties.

We are direct lenders, meaning we lend our own money, for flips within approximately 1½ hours of our home.We walk through every property to avoid surprises and to confirm the rehab estimate.

Also, rezoning from RS-3 to RM4.5 is like a .0001% chance and depending on your ward some alderman refuse to consider spot zoning no matter what

Thanks both.Would you say just as a general conservative estimate that the ADU $ / sq ft might be 50% of the main house?

I want to minimize my leverage as much as I can for my first one, just to give me the best chance of success.Got it, @Geoff Engel!

Also, as fyi, the load amount is for $487,500 (I'm not entirely sure if that would fall under a large transaction category).Yup  I would say there is a good chance that you front the 7500 and don't get the loan.. 

By any chance, do you know if you're eligible for any government grants and/or funding?

I estimated capex at 10% which I think is low considering the deferred maintenance, 10% property management, 8 percent vacancy.

If the stars align, we estimate that we could potentially earn $1,000 to $1,500 per year from the property.