Not only does this lower your taxable income, but it also allows you to support a cause you’re passionate about.

or an income play which typically provides lower yield because they typically inherently have lower risk

This implies residential units can be built at lower costs than ADU additions and provide better return. 11) adding an ADU to SFH can make the SFH fall under rent control.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

thank  you Laura -I do feel good about the compensation as they have been our only boots on the ground as we just can’t use “ friends” anymore ..I also found out that the $500 monthly fee is lifted once the place is rented and she goes to a much lower rate / hourly when things arise .I just thought it was a unique price structure and have never heard of things executed as such before .Thanks again for your reply-Christian

. - OP offers to send handyman to diagnose the lower unit’s issue,  no one suggested this.- OP has not indicated they will involve HOA even though multiple replies suggest doing so.OP asks for advice, but seems to ignore it.  

Rates are typically lower and you can have higher LTV for primary houses, however investment properties is still doable for both 1st lien or 2nd liens as well.

If your primary has a net $1M appreciation you’ll only pay $100k cap gains tax - that’s a lower alternative than what you propose.

If you purchase a newer property that has been recently and properly renovated, you may consider using a lower percentage.The biggest impact on your cash flow will come from the property’s location.

Long-term rentals offer diversification, learning experience, and lower returns but may generate lower returns.