We’ve worked together for about 2 years now, and he is focused on the operations side of the business.There are many solid sponsors and operators in this asset class, some newer than us, and some older – and quite a bit of new money coming into this space (part of this is where we are in the market cycle, and other asset classes being overpriced like apartment buildings).I’ve personally had several conversations with @Jefferson Lilly (and met him at a conference), and he knows the space well.

You would have ongoing filing requirements with the State and would need to keep business records and documentation.

Improvements that DON’T drive the ARV as much: Windows, Landscaping, Driveway, Rough Plumbing & ElectricalI agree with @Jaron Walling about meeting the appraiser at the property and providing documentation.

I would certainly put some (if not all) of the repair on the tenant particularly given the fact that its a new build.

Building our PM company has been the most rewarding experience of my career. 

What rate, term and amount borrowed did you get for the ADU build and what was the cost?

Proof of funds would be a bank statement or some other document indicating the liquidity you have.

Purchase price: $220,000 Cash invested: $100 Sale price: $225,000 Wholesale: 2 build property to a Developer.

This is a straightforward and common approach.However, make sure to document the change in the lease renewal or addendum, specifying the new security deposit amount.

I wish you the best in your investing journey and this forum is chock full of very experienced and talented investors and realtorsDoes this helphttps://docs.google.com/document/d/1N-eMKaHkPJquU9r1jfrA-ZTk...