I jumped into real estate doing the BRRRR method, understanding that holding property will allow me to build generational wealth, but then learning that landlord income is not the best way to feed your family.

Trust and referrals are the lifeblood of building relationships in the real estate investment world.

The initial plan is a 1200 sf build out with plans to expand back away from the cliff later as finances and interest rates are more favorable.

If you are not building in sufficient capex, then these costs could be higher, if not much higher.

All my properties are true multi-family, More than 5 units per building.

Build a local team of real estate agents, property managers, and CPAs to navigate local laws and manage your property.

Anyone who managed to do this probably did it 5+ years ago when the market was very, very different.If you borrow $200,000 to build an ADU, I suspect you would need to rent it for $5,000 or more to make the numbers work.

What nice though with that is you build equity quicker.So just adding my experiences with the commercial side, from an owners point of view.Good luck!

But keep in mind if your using money you cant afford to get back then buying action property might not be appropriate for your current endeavors and its better to just buy open market were you can do proper due diligence and know you have a build-able site.

Helps with your debt to income, better opportunities at cash flow, and typically requires less down to purchase.In regards to challenges, I usually build in an extra 10-15% to deal with things that I can't see behind the walls, including dry rot, electrical or plumbing issues, etc.