How much extra do you have to work to cover the difference in higher costs?

The one unit nearly covers our entire mortgage. 

Thankfully my job covers my insurance completely and gives me 20k in equity every year but no 401k match.

.- Their coverage, covers you.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processesWe recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

Operating Expenses (30-35% of Income)Rule of Thumb: Allocate 30-35% of your rental income to cover operating expenses such as property management fees, maintenance, repairs, utilities, and insurance.Why: Properly budgeting for these expenses will keep your properties well-maintained and avoid unexpected financial strain.3.

Pay for labor only per job and cover the material cost yourself.

Have you ever had to cover a funding gap in a project?

My mortgage would go up $781 for the next 30years,  the ADU income would more than cover & I hope to pay extra principal to cut my loan time -it's just I was hoping to pay off ADU within 5.5yrs- so that I can collect 'all' ADU income at that point <I'm fixed income & I lose 'some' personal income in 5yrs so trying to plan ahead on how to recoup that>.

I think giving somebody 50% equity plus repaying the loan is incredibly steep when I would cover all additional expenses and construction expenses and give them equity in all future acquisitions that they put nothing into plus additional future real estate related business.