You’re $20k will be your future savings that you will need to have around in the bank for when your property needs repairs or there is a vacancy.

The fix was 6k in repairs, they called the county as the septic was passed based on permit. 

Taxes, Insurance, Vacancy, Repairs, CapExp add up to $615 (insurance may be a little high until i get it quoted).

Repairs What was the outcome?

Many foundation repair companies (and some pest control) offer services for crawlspaces, to include mold remediation, encapsulation, etc.

This assumes some holdback for capex/repairs/vacancy that will be lumpy and (hopefully) not occurring every month.On a $200,000 interest-only loan at 9% you'd be paying $1,500/month.

Just because you add an ADU doesn’t mean it’s going to add enough value to recapture that $300K.If it sounds slightly out of your comfort zone a simple conversation can be extremely impactful Thats where breaking down the payment management tools, local experts on small repairs, credit and background checks for renters, all comes into play.

Not to mention taking care of repairs same day.

The proposed real estate investment is too broad for you to compare returns between the two, what is the purchase price, what kind of repairs do you need, what kind of rent are you going to get, what is a good estimate for appreciation on the deal. 

Normally when you hear cap rates this high the expenses are not calculated correctly or certain expenses are omitted (no vacancy loss, no management fee, light on repairs etc).