Here is a list of what adding ADUs, especially in single family zoned areas,  in my CA market is typically a poor RE investment:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

Today all these homes could be sold on the market for a good return since homes on Long Island has had big gains.

POW you maybe just gained a buyer. 

I have heard a little about seller financing and it seemed interesting but just unsure how to find deals, start, or how the negotiation typically goes.

@Lucas Helliker I am a multifamily broker who only sells multifamily in the KC metro - typically 5-50 units but go as low as 2 and up to about 72 units.

That means either you won't cash flow or your Return on Equity (ROE) will be terrible.Since this is your primary residence you'll be exempted from paying capital gains taxes when you sell.If you sell to your parents, it will be considered a non-arms length transaction and will get closer scrutiny.

Out-of-state investors typically focus on larger cities like Louisville or Lexington, which dominate about 75% of discussions I have with OOS investors unless it's an STR market.

When it corrects there are typically just a greater amount of opportunity especially when there was a large run up to the correction by those who did not follow traditional risk mitigation measures when investing.

So if you have one unit advertised for rent on 6/1, another on 8/1, and another on 10/1, this will affect the depreciation  % on the tax return.Repair vs capex: capex would typically include all costs prior to the property being placed in service INCLUDING mortgage interest, insurance, property taxes, utilities, etc.

Since you have lived in the property for two out of the previous five years you could take the first $500k of the gain tax free (as a married couple).