Finally, I get an annual disbursement of $40k.

But for most properties, it’s a smooth way to add value and potentially start bringing in some rental income.To give you an idea of what’s possible, I ran an analysis on a project in Sycamore Square, Los Angeles.

If its a single family home its a far simpler analysis.

It felt like a big win when I finally closed and was able to pay that money back immediately after.But right after closing, disaster struck.

This negative equity position is one of many reasons that adding ADUs in a single family zone is not typically a good RE investment.OP whatever you decide to invest in, make sure you do thorough and conservative underwriting. good luck You’re right in that the level of underwriting I presented wasn’t institutional level - but for your average person just starting out, institutional grade analysis often makes the thought of investing overwhelming.

Some towns that seem promising on that front would be Saugerties, Windham/Hunter, Tivoli - You really just need to search and do a lot of analysis on the market/availability of properties, as well as the regulatory climate.

It has been a long process, but I am finally living in it.

I disagree with some of the analysis here.

FINALLY!

Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started.