But, you still own house and benefits are as follows.1. tax benefits2. principal payoff on your note.3.

It's not that I have zero cash, just not enough on hand to close the deal on my own.Purchase Price: $275kRehab Cost EST: $130-$150kARV: $550k-575kLake Front house w/dock (a huge incentive on this lake)I have a little over $30k available but don't want to drop much lower but also hate to miss out on this opportunity.  

If so, you may be able to wholesale the property to someone (perhaps even someone in one of those $400,000 houses) in such a way that you and your grandmother come out whole.

Try looking into cities in with stable economies, strong renter populations, and where housing is below the US median value.

I personally think there is just not enough comps yet to show the true value of ADU's.

There's no workaround for bringing it in house.

@Lauren MerendinoI strongly believe that your chosen market should be somewhere that you can go to in person / have strong personal knowledge of / have family or a network in already.  

So back to being a real estate investor: the only way to be one is to buy a property and create value out of it, whether through finding a below market value house and selling for a profit, or renting and creating cash flow.  

Took me 2 years to completely gut and re do everything in the house.

Budget these carefully into your overall project plan to avoid surprises.Rehab Budget: Ensure that bids are received from multiple contractors and that adequate reserves are made for cost overruns.ARV: Be conservative on your ARV since the appraisal concerns one person’s opinion.