Buying this house will only make sense if you're getting something of value in return as far as a business deal.

Focusing on equity growth makes a lot of sense if you're in a position to take advantage of those opportunities.

You'll never pay them fast enough to make it make sense.

That makes sense from a buyer and renters perspective.

If you are using it to buy a turnkey property which needs to produce cash flow to be considered a viable deal how does buying turnkey(Little to no cash flow) combined with HML(High interest only debt) make alot of sense financially? 

The insight about ARV being influenced by nearby single-family properties is gold—makes total sense now.Right now, I’m just exploring Sacramento and trying to learn as much as I can.

Even in HCOL areas, adding an ADU typically does not make sense because developing a single small unit is the most expensive residential development that exists.Adding an ADU is a lot of work (probably more than a brrrr but with worse return), has poor financing options, typically adds less value than the cost of the addition, and detracts something from the primary structure even if it is just yard and privacy.Good luck 

I’ve seen that in my W-2 job, so it makes sense that the same value is applicable in real estate.

It may make sense to save a bit more and invest from a position of power.Keep in mind most helocs are adjustable.

Here's how I do my due diligence:1) Portfolio matching: (takes 30 seconds per deal)a) Have an educated opinion on where I think we are in the real estate cycles (financial and physical market cycles)b) Then and only then do I pick the strategies, capital stack, and specialized asset subclasses that make sense for that opinion.