I realize a sample of one is real small and that she did minimal research before proceeding but she is so far negative on this ADU conversion that even with better contacts and research it would still be negative. 

FHA has its own inspections so to win at FHA (unless you are doing 203k which is not advisable right now and for a new investor) you need a property that will pass the test.Your net income will be low to negative with FHA and PMI as well, which can be ok in NY/NJ with appreciation, but it seems like you are thinking more units, more income, but it also means more problems for a first-time landlord.

Zero cash flow translates to negative cash flow in the short term because you have to maintain it.  

But your post helps me think through so many different aspects from the investor perspective.  

Also, since they are offering to correct the breach before the contract has been terminated would bring the contract back into compliance I think and negate any claim of damage.

Hello, I think it’s really awesome that you’re just now beginning and you are already coming to the forums to learn so the first thing you need to do is to continue to stay on the forms and you also need to be reading all of the bigger pocketbook and start listening to their podcast to soak up as much knowledge as you can and as long as you do that, you will have all the knowledge you need to start and regarding your question I do not advise to buy a single-family house just to live in it without a rental property aspect so it’s OK if you want to live in the house as well but you will have to either get a multifamily property or you could also buy a single-family home and rent out the other rooms  now see when you have a property that you use just for your family then you have to pay the mortgage every month which is building your equity, but that responsibility is solely on you whereas if it has some sort of rental property aspect, there will be other people helping you build that equity if you were to buy a property just for yourself that is something that will be taking money out of your pocket every month while as a rental property if you buy right will be putting money in your pocket every month the only exception to what I just said is if you buy a property for yourself or just for your family to live in, you could do a live-in flip to where as you’re living in the property you rehab it while your living there and if you buy right with enough knowledge, then when you turn around to sell the property, you will make profit

If not, to give an inch they would have to have no other negatives.

Im always surprised at the negative comments when someone talks about the real estate cycle, especially when history tells us it is somewhat predictable.Can someone predict the exact inflection point?

Give me a call if you want to discuss that aspect.

So what's the value add aspect, where do you pick up margins?