I was born and raised in Hartford.

It is usually difficult to take money against it from the bank, it might not be a 1:1 value add - meaning if you invest 100k into an adu it might not raise your value by 100kThat being said, it can be pretty lucrative especially in expensive and sunny CA - since building lots are no where to be found and existing real estate returns are very poor.My partner builds these units.

An update one year later after this post, I now have:- Got my property and casualty license and wrote 370+ policies in a year- Saved up a few more thousand dollars in investable cash, paid off $20K in debt and raised my credit score by 100 points- Launched a direct to seller cold email marketing campaign and generated leads for cheap- Got connected with a few real estate investing communities like Subtle Asian Real Estate and Pace Morby's SubTo- Aggressively read and studied as much as I can get my hands onThat being said, I decided to run a marketing campaign to generate distressed seller leads in Phoenix, Arizona, mostly because:1.

The property must be able to self-sustain from the rents received if you are financing using an FHA loan (rents must be able to cover 100% of the PITIMI). this does not apply to 2 unit, and I'm finding that some lenders will use all units for this test (assigning a rent value to the owner occ unit) and others will only use the non-occupied units for this test. its a hurdle to be aware of if you intend to buy MF using FHA. 

In other words, your renters have covered a majority of your costs of ownership this year, including covering your debt, and you have to put some additional money in, which raises your cost basis.

And, being 23, raised in this world, I really don't care about substance, I care about making that $ yo!

I am aware of the formula you referenced in your initial response. 

Some also make sure the pool area is well-lit and that guests are aware of the safety rules. 

I know I'm getting the tax benefits of depreciation, the minimal positive cashflow, and the appreciation on the property, but It's pretty much a long term play of slowly raising rents annually to increase cashflow, which will eventually get basically reset when my loan goes P+I in 10 years.

You can later transfer the property to the LLC, but be aware it might trigger due-on-sale clauses or additional costs.