When you took in the increased cost of the build how did you arrive at that percentage?

In southern CA, even garage conversion ADU additions are typically costing more than the value added.  

Contrary to most business lending, the REI industry has a lot of "non-bank" lenders that provide attractive loans that can lower your cost of capital and improve your profit/cash flow. 

I am in this camp myself, as I do this full time.I agree with your point about focusing on long-term sustainability rather than chasing maximum rental income at the cost of increased tenant turnover or property damage.

@Tiffani HollisFor a long-term rental, I’d avoid used dishwashers entirely—repair costs and reliability issues often outweigh the savings.

If you sell your property, the tax basis (original cost) of the property for the giver becomes the tax basis for the recipient.

If they want to pay $1,300/mo as is, saving you the Reno cost.

But I would charge the extra 3% to cover my costs.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

WHAT IS A COST SEGREGATION STUDY?