To add the unit you will most likely need to achieve proper fire rating between shared walls/floors/ceilings and have interconnected smoke detectors.

Unlike common mindset, the value add should be in high cost market to achieve highest return.

The deal highlighted the strength of our partnership with Jamie and our commitment to achieving outstanding results through strategic investments.

Total PITI : $2,800 p/m ADU: Rents : $1900 p/m Home : would rent for $3k per month Potential Gross cash flow: $2,100 per month Purchase: $500k Current ARV: $900k Can these numbers be achieved today with high interest rates and high prices ? 

Any valuation must evaluate the expected value after value add as well as the risks in achieving that valuation.  

My friend wants to include me in on this so we can both achieve financial freedom together.The plan currently is to take out a personal loan together for the $20,000, put in $5,000-10,000 worth of work into the property to make it livable as soon as possible, move into the property ourselves so we don't have to pay rent anymore, and then refinance as soon as possible.

On the other hand, BRRRRs will cash flow slightly.I personally think that the farm purchase is more of an emotional decision for me and I am leaning towards not going forward so I can invest in BRRRRs which helps me achieve my goals more quickly. 

@Damion Brown You can definitely do a nice project in this budget and achieve $1600-$1900 rent.

They're experienced personal finance people and they have it all on 0% interest balance-transfer cards.

I believe my investors will not be able to achieve this in the first 5-10 years of investing.