This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

The hedge funds and firms alone are buying more supply than is being produced. 

A deal that produced a 25% net IRR to investors with a 1% acquisition fee, 1% asset management fee, simply pref + single tier waterfall, etc, may only produce a 15% net IRR under the current fee and carry structure, if their acq fee went to 3%, pref went down, they now have a GP catchup and multi-tier waterfall giving them higher splits for higher returns, etc.

Consider selling the duplex to put it into a higher income producing asset (out of state, DST, something).

@Mark Allen Hopefully, this gold mine is still producing.

Obviously I'm all in on this first house and I'm rooting like heck for Clayton's team to produce a winner for me, but as for my second, third, fourth...etc.?  

Do you have any other income producing assets? 

If the real estate is producing a steady return, you can make more aggressive bets with stocks or other alt assets.

I'm curious how something like that would work with land that doesn't have an income producing rental on it yet? 

As you know, cash flow comes down to how much you have to put in the deal, what it produces, and how your debt payment is structured.