I'm a huge fan of ADUs, but if you are saying that it won't generate enough money as a long term rental, then maybe you should be looking elsewhere. 

In view of the fact that I'm a newbie, complete home renovations seem out of my league (for now).

I am always a big fan of sailing downwind, you can take that in the context of what the market offers at any given point in time, or geographically - meaning the type of inventory Sheboygan County offers.

@John Mucilli I am NOT a fan of deal machine.

Per our phone call the other day, I use RealizePM to manage 24-units and I'm a big fan!

I am not a huge fan of buying a new car because of the value it loses but I agree with you, you are making money to spend it on something. 

I'm a bigger fan of buy & hold for the long term and goin the LTR / MTR route. 

I'm fine with the money down and shorter term but the higher rates and the ARM I am not a fan of in general.  

G'Day Luka,I'm not a fan of out of state BRRRR.It's hard enough for us on the ground to get rehabs done on time and on budget and I don't even want to think how difficult, expensive and time consuming it would be for out of state investors.And then include a high LTV and that can be a portfolio killer IMO.Hat's off to you mate for grabbing the bull and jumping in.You live, you make mistakes, you learn and you grow.Such is life.Building a large portfolio is an absolute must when investing in sub $100,000 properties in Ohio.I "killed" my business by not wanting to sell to investors that are using leverage.Our sales volume could increase by 70-80% but it is what it is.I just don't believe in it or want the hassle associated with it lolReason is mostly two fold:1) Not in the mood to deal with lenders for 2 months and hope the deal will go through.2) I don't believe that investors should use high LTV when building the foundation of their portfolio.My advice to you:1) Pay them off as quickly as you can.2) Build a larger portfolio.The investors that $#@% the most on my name are the ones that buy 1 or 2 properties and expect miracles.As you said, 1 furnace goes out or a sewer line needs repaired and bye bye cashflow for 2 years.We get blamed although we can't predict to fix certain things and there are just many unknowns with all investments.Our happiest investors are the ones that own 6-7 or even 10+ properties and all with cash and no leverage.They aren't worried about turns or tenant issues that occur on 1 or 2 properties as it's just the nature of the beast.Returns vary but across the board over the last 10 years I have seen 6-10% net ROI's year after year.Building a large portfolio is a must to minimize risk and to get the best possible long term ROI.Thanks 

I am a fan of the cosmetic repair buy and hold How did you find this deal and how did you negotiate it?