(That said, the current cap with the rental income on the cottage is still around 5.7% — not too bad for this area!)

Are these old workers cottages?  

I've been documenting that it's possible to generate a $10K monthly net income within 2 years using rental arbitrage.I've been making videos and time stamping them so NO ONE can say I'm a guru or faking it.When the market's hot, like it is in CA, I think rental arbitrage makes the most since.So what I'm doing is RENTING small apartment units/cottages from other landlords and converting them into short-term corporate housing rentals.I started with $10,000 in cash and used $2,800 to set up my first unit.I saved all my profits until I was able to set up another unit.

We have a cottage nearby so we complete the upgrades during the summer months and get to write off the gas and some food expenses that usually would just be vacation money.

I live in Traverse City in northern MI.My wife and I currently own a large SF home which is our personal residence and a small cottage an hour away which we used for vacations (her family lives nearby) and plan to turn into a short-term vacation rental in the not-too-distant future.I have been looking into different types of real-estate investment recently.

Cool cottage! 

Remember the book "Who moved my Cheese?" 

Obviously you'd have to run the numbers after construction costs to see if it all makes sense but homes with additional units/cottages are in high demand.

Typically many of the SFHs here have a 500-600 sq ft 2/1 or 1/1 cottage (called an Ohana because I guess they used to be for family to visit - but now everyone rents them because of the high cost of living). 

Investment Info:

Single-family residence buy & hold investment in Westminster.

Purchase price: $625,000

Cash invested: $156,000

Short-term rental investment. Lakefront home with views of a ski mo...