Eventually I realize that when I think about living on post-expense rental income, I’m treating the income as the “withdrawal rate”, in Boglehead parlance.

The ideal home price for you will depend on: 1) downpayment size 2) risk appetite, 3) preference for more cash flow or appreciation.Given our price points, our investors need to have 35-45K to start, on average.The typical cash-on-cash return on our properties net of loan payments, insurance, taxes, and property management fees is 6-8%.Ultimately, you can obtain financing from any lender, although we have partner lenders that can provide very competitive rates.

The house is definitely on discount because of it, almost worth it to go through the trouble if the number makes sense. 

•Explore private lenders or hard money loans if you need higher leverage, though the interest rates will likely be much higher.

Preferred returns would even be acceptable but not a straight interest rate play if the lender understands the structure. 

Actually, the water rate goes down when you have an ADU if you have DWP.

If you budget the negative cash flow over the course of the hold period and have reserves set aside to fill the gap, there is no problem (assuming your investment meets your target appreciation rates - I understand there is no guarantee there). 

There was one here local to me that was on the market for over 2 years before it sold at a significant discount.

Are $300/squares for GAF HDZ good rates.

Fit buy box of A or B rated school that will appreciate over time.