The details are controlled by Section 483 of the Internal Revenue Code.https://www.law.cornell.edu/uscode/text/26/483Some bloggers, YouTubers, gurus etc. mistakenly refer to two other sections of the tax code, so let me address this confusion.Section 7872, also described in IRS Publication 550 as "below-market loans."

I wanted to add that I have been a skeptic of Roofstock in the past and voiced some concerns over process and control for buyers on that platform.  

First, I control quality, cost, speed, etc.

Hi Gaya,Creating an off-market pipeline could be a great strategy for you to not only get great deals but build consistency and control over deal flow.

Time sink: takes so much effort and time while working full time.Option 2: Buying Rental Property in a Cheaper MarketPros:Time to cash is immediate is about 40 days from closing time.Landlord friendly: which means eviction and rent control in LandlordDiversification: Investing in a different location spreads the risk.Property Appreciation: Some emerging markets might offer significant appreciation over time.Established Rental Market: Easier to find tenants in established rental markets with a high demand.Potential to build an ADU: i can build on the property land.

It still would not alleviate the other issues with an ADU addition such as revenue out long (often many months) before any incoming revenue, the worse financing associated with the ADU, that it likely makes your primary a rent controlled unit, that it detracts from the primary even if it is just yard, that adding an ADU addition is work (likely more work than a BRRRR with much lower returns), etcCan you post the valuation you receive when you receive the appraisal?

Though impossible to measure, and a fraught investment metric there is a certain emotional capital gained by creating something beautiful that you love and can enjoy.

For instance we’ve got a bees nest and I’ve already arranged for pest control to come in less than 4 days and notified the tenant about this and still they call/text 12 more times to bring the issue to me.

That's why its best to inspect the property periodically and nip things in the bud before they get out of control.

In New Jersey, rent control laws vary by municipality.