I maintain even break even on valuation (which is rare in SF Zoned areas), the ADU has big disadvantages versus new property acquisition including financing, level of effort, rent control, prop tax being based on cost rather than value added, length of time including length of time from first expenditures to first income, reduction of something from existing unit (in your case existing home lost its garage).Did you see starting next year Mf can add an ADU per unit up to 8 units without any affordable housing concessions?

@Chris Johansen There’s a few action items you should take care of to protect yourself from construction related liability.1.The Builder should maintain commercial general liability and professional liability insurance 2.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

While the lease will most likely include maintaining the units themselves, these organizations are not going to manage it anywhere close to what you could and should do.

When I maintained my position that I wouldn't be paying 10K up front, Dmitri then insulted my section 8 investing knowledge and suggested that if I wasn't ready to move forward, then it was because I didn't understand enough about section 8 to begin with.

Since you retain control of your money, how does one consistently maintain 30-50% cash on cash return? 

•Target a property in the $800K–$1M range to maximize leverage while keeping costs manageable.2.Open a Second LLC:•Create a new LLC for this property acquisition to separate liabilities and maintain a clean structure.3.Assign Funds & Organize Finances:•Allocate funds to property improvements, marketing for new deals, and reserves for emergencies.

Rents can’t realistically continue to appreciate at the rate they were if we are to maintain a healthy housing sector.

This could include an easement(ingress/egress), shared costs(s) to maintain the well, or usage/owner. 

To thrive in real estate investing, you must maintain a firm grip on your finances.