This initial negative equity position consumes the initial cash flow.  2) the addition of the adu makes the property multi family and likely makes rent control apply.  

Hi Jasmine-Congratulations on being ready to turn your primary residence into a rental.Your question is should you use a property manager or self-manage your property.If there is enough positive cashflow or you can afford to pay a property manager, I always recommend doing so for the following reasons:1.

Is this happening in other cities too because the majority of the federal workforce jobs reside outside of DC.

I just completed an exchange of a single family residence in Scottsdale to a single family residence in Durango, Colorado. 

If I were in your shoes, I’d look at the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) to stretch your liquidity while building equity and cash flow.

In this case, they get equity but do not make decisions. 

no reports of incidents with our residents but there were some people injured and some homes damaged. 

Some of the best investment were made in bad neighborhoods and higher crime rates then as usual the area becomes gentrified and continues to grow in both equity and passive income.

In option 1, all but $10k goes into equity in the property.

This has been one of our goals since starting the Academy: to help our clients take that next step into purchasing investment real estate in an effort to create financial independence & generational wealth through cash flow, appreciation, and equity.