Here is a list of why adding a single ADU in single family zoned areas in my CA market is typically a poor RE investment:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

Britt,My firm has evaluated some smaller properties (under $500k) in the past for cost segregation, and it generally does not cost justify moving forward, since the benefits are small, and typically the tax liability on the income is minimal if any.

Thanks- Robert very challenging to wholesale commercial properties as there are a lot less than residential and most are more complex and sellers typically go through brokers and the buyers are more institutional as well.

This new twist of claiming you owe them money is a typical scam tactic to put you on the defensive so you won't contact them about the money they actually owe you. 

Self managed HOAs are usually undercapitalized so you want to take a thorough review of the condition of the community to make sure there isn’t deferred maintenance because you might get hit with a special assessment if the board isn’t setting aside cash for those capital improvements.At face value, taking into consideration my typical financial objectives, I wouldn’t do this deal unless it was a much lower price.

@Joe Gellenbeck Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

Sometimes using some contractors for one project will be good and then switching to another contractor for another project is typical because each scope of work is different. 

Remember that if you buy 5+, typically that is going to be commercial lending and that can be tougher to sell on the exit. 

If we price it for what the comps show, then they are typically coming out of pocket every month. 

As the cash flow is obviously much worse than you can earn in the bank with a basic CD.