If you’re short on down payments, here are a few strategies to consider:Leverage Equity: If you own any properties with equity, consider tapping into that through a cash-out refinance or HELOC to fund your down payments.Seek Joint Ventures: Partner with other investors who can provide the down payment while you manage the property or contribute in other ways.Explore Creative Financing: Look into options like seller financing or lease options, which might require less upfront capital and can be structured to fit your needs.Consider Private/Hard Money Lenders: These lenders can offer flexible terms and quicker approval compared to traditional banks.

It's all about knowing your structures, how to adapt them for maximizing ROI.  

A few examples are 10x20 $40 ($55 market), 10x24 $40 ($60 market) 16x20 $50 (Market $110, I would move to $75 to start) Our suggestion is an interesting way to structure the deal.

When these are defined you will have a better idea of where the structures and other utilities can be located to serve the community. 

On the flip side having 2 residences in one building does bring efficiencies from a management/ownership standpoint.Finally, the payment structure you mentioned (30-40% until project completion) is fairly standard for pre-construction properties.

From a bookkeeping standpoint, this makes everything a lot easier as long as each financial account is used the way it is supposed to be used (no commingling).I would just caution you to think about the functionality of that structure within your day-to-day business operations before pulling the trigger on it.Make sure you're keeping things as simple and efficient as possible.

With a $500k investment you could probably easily grow to a $1.65M, 6 units portfolio, with cash flow in excess of $2,500/mo, all while reducing your structure count from 6 to 2.

Electric Meters: I doubt the even if the ADU is a separate structure they have a separate electric meter as they were mainly used for guests.

3 of my faves when I was active for entity structure,  contracts and landlord-tenant have retired but Ryan Feeney of Overcast Law was very good with landlord-tenant matters. 

Structured correctly, entity paperwork in line, we're sure about credit and liquidity, we have the title and insurance contacts, we have pic IDs.