BTW, there is a lot of angry homeowners receiving lots of calls from investors to buy their homes cash... 

Since house flipping has become so popular over the past few years, it's never been more critical to give your projects that extra *POP* that homebuyers will notice as they're swiping through Zillow. 

-Have an extra umbrella policy-Speak with my real estate attorney to make sure I did enough to limit my liability. 

I just had to take extra money out of my personal account and funnel into my rental account. 

We have also toyed w/the idea of buying/moving into fixeriuppers and selling every 2 years. 

I think the big question is how badly do you want to keep the extra $50k liquid?

It's a fantastic strategy as long as you still have your HELOC, buy during the last downturn, one of the first things that banks did was to shut down HELOCs.

They are just going to use their 2nd VA loan to buy their next one while this one is tied up. 

Steve if you can go without buidling the extra garage below the ADU it will save a lot of money. if you can get two studios it will do much better than one ADU.

From an operational standpoint you might also want to consider the cost of any extra tax returns that are needed by the entity as well as any extra accounting fees.Good Luck!