Personal Item, Rent Income, Rent Expense, Flip Expense, etc. 

.: $125 per month, but I assumed 10% Capex+Maintenance: 5% (Assumed this since the home was recently rehabbed and all major items have 7+ years)Property tax: ~$5,000 (Could increase in the future; not sure)Insurance: ~$600Cash flow: ~$250 per month (while not huge, I expect some appreciation)

You need to budget and an additional $929 to set aside for future budgeting items (vacancy, maintenance, and capital expenditures).

I look at every single item in the pro forma and imagine that it is complete BS, and see if I can challenge it.

The Inspector could not find ONE defect or item for us to correct..

Very important to do your own research on all of these items and not just accept their projections as accurate. 

This year I just felt like it’s complicated to keep up with my invoices and give him itemized numbers.  

Other items: remove pine tree.

In terms of the math, let's look at return from rental income and return for equity:For each item, calculate a year's return, and there's your approximate ROIFor the ADU conversion: ($4000/month x 12 months)/$500,000 cost = $48,000/$500,000 = 9.6%That's before expenses, which will cut that number down by several points.

No side R or D will "win" from a regional banking crisis, it's a universal item to be addressed.