I wouldn't be kicking out all the profit to someone who has no equity in the property. 

AirDNA (I always check multiple places) says this property could make a $500 average daily rate (ADR), with 65% occupancy as a basis.I pulled up the new BiggerPockets STR calculator spreadsheet and realized this might be a winner.After entering all of my research numbers, it shows a potential CoC of 12.49%, a monthly profit of $14,385, and expenses of $12,442 (even with a 15% management fee).

Garages are often cheaper to convert to ADUs than ground up construction, but not cheap enough to obtain a profit worth the effort.  

Good profit margins How did you find this deal and how did you negotiate it?

The lender would receive nearly $12,000; after all other expenses, the projected net profit is less than $20,000 for the borrower.

I am trying to figure out if probate/wholesaling can lead to an ongoing profit that can be transitioned into a full time business or a side endeavor that may pay out a couple times a year.

The deal has enough skin on it that we will still make a nice profit (its a multi unit with other units so this isn't our whole budget) so thankfully just comes out be a learning experience.

low cashflow high appreciationNotes purchased in the secondary market at discount to remaining principal balance have the built in capital gain profit with potential for greater ROI thru early payoff or early PARTIAL paydown.  

So I would educate them on the fact that they were given a gift for many years, and now that you have finally chosen to raise rents to market (so that you can make the profit that you deserve) they will have to wait for a year so that you can put aside some of your new (and well deserved) rent increase to pay for their nrew floor.

After marriage we sold the house for profit and moved to S.