This increased the average density by 50% and opened up opportunities for multifamily and ADU to be built on almost all residential zones.In a situation like this, new opportunities are bound to present themselves to homeowners and to investors.

By making partial dispositions, you can also avoid subsequent recapture on these items when you go to sell.

Hi all,I'm sure some have heard of the properties being built by Clifton Homes:Location: 9440 N Adrian AveThey are a fully vertically integrated operation (prop mgmt, construction, and financing).This is their deal:Cash in:  $50K6-8 months later:One time refinance to put a long term mortgage on it at or around 75% which gets your $50k back + 16%.

I purchased a newly built duplex in August of 2021 to house hack.

This is a risk item.  

This renovation took 2.5 weeks for two guysScope of WorkDemo and gut entire kitchen, gut one bedroom, and partial gut of bathroomBuild new closet and frame out a wall to create a bedroomInstall new laminate flooring in two bedroomsInstall new subpanel and new electrical for entire apartmentNew (and some reused) cabinetsNew quartz countertopNew (but bought used) 24" rangeNew microwave and fridge (new fridge not shown in photos)New toilet, medicine cabinet and vanity light in bathroom New built-in kitchen table and chairsCost of Work (approximately)Labor $6,500Cabinets $2,000 - I bought some nice, used Ikea cabinets from Craigslist for a previous job and I had some left over.

I think the market has to really shift, where people just don't want to take on rehabs for there to be equity built into the deal. 

A 100k home in Podunk Oklahoma that was built in the 1930's, is going to probably need a whole lot more than 10% of rent going towards capex, and likewise a 1m home in San Francisco isn't going to need anywhere near 10% of rent for capex. 

Unless you live in area that has many ADUs already built that have been sold with the home or as individual parcels.

A business is literally built for cash flow.