I would stick with a 6-8% increase as that would be easier to digest on the tenants part.

Not only is California one of the most tenant-friendly states around, but compared to the rest of the country, prices are super-inflated at the moment (my dad just sold a 1600sqft tract home in Cerritos, CA for $880k!)

Unfortunately the tract that the house is in has an HOA that only allows 30 day minimum rentals.

I read this article (from Stessa's digest email) and pricing seems to be going the right direction for properties with ADU.

Prior to that, Freddie Mac's Home Possible would go for that scenario if the census tract was low income, even if the borrower was high income.

I don’t see a lot of new tract housing being built in the areas I’ve driven around.

Property can be in LMI area of your income must be less than 80% of median tract income levels

Jon, I absolutely do not see a possibility of the Detroit municipal government disowning tracts of land within it's boundaries.

Thank you all for the feedback.Likes like NC doesnt play well with others in the field of legal services according to this recent WSJ post...http://www.wsj.com/articles/legalzoom-sues-carolina-state-bar-news-digest-1433720614

Personally I'm not a huge fan of JWB (although I've not bought from them) but that is mostly because they throw generic builder-grade tract homes on every low-quality lot they can get ahold of - whose only value is their "newness" - then sell, rinse and repeat.