It is usually difficult to take money against it from the bank, it might not be a 1:1 value add - meaning if you invest 100k into an adu it might not raise your value by 100kThat being said, it can be pretty lucrative especially in expensive and sunny CA - since building lots are no where to be found and existing real estate returns are very poor.My partner builds these units.

Just going to piggy back on what others are saying here with a simple question you should ask when considering buying any existing property, assuming you aren't buying with the plan to demolish and build something new:- When my current tenant leaves, what kind of tenant will replace them?

(No mortgage on any).the cash flow is a total of $3,100 a monthDo portfolio loans exist for these kind of situations?

He tried to do patch work on this one wall with existing paint and it looked like a jigsaw puzzle :)  If you can't touch it up you're using the wrong kind of paint.

Quote from @Celli Mowery: Hi Jamesinteresting message -I know I’ve seen your name often on the Bluegrass Investors GroupI have spent the last 5 years investing in London and while some of the concerns you mentioned did exist when we started I’m finding we haven’t had issues with tradesmen coming from Lexington & Richmond for us in recent years.

There's also a detached two-car garage and workshop.It exists in kind of a twilight zone between commercial and residential. 

Though he prefers to reposition existing multifamily properties, he has also subdivided land, built homes, and constructed self-storage.

And generally were i have seen them used is with free and clear prop not prop with an existing mortgage/trust deed..

Only so much exists.  

Find out through asking the right questions what will help solve any existing problems, that will give the seller a nice monthly Passive Income Stream, etc. 4.