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.

That way, you keep more in reserves and have more to put towards your next house hack.

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

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

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

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

@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.  

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.

They even sent someone from the city to the house to tell us to stop operating it as a STR.