If you need 10 minimum and have to hold those non-paying tenants until you get 10, what does that cost you in your financial model?

Education 'opportunities' in real estate come in several flavors.

Also given the slow market it seems some RE agents are willing to consider a hybrid model.

STR's don't create real estate value they are a business  I have a dozen and am building 2 more this year so I like the business model and I have over 100 regular rentals.   

However, when the business model of "value add via ADU addition and rehab" gains some traction in a given market, and those properties with begin to trade, there will be comps. 

His model is the exact opposite of what most gurus teach. 

Quote from @Bruce Woodruff: I assume you;re talking about a model like this? 

It's that the PM model itself is flawed. 

He indicated that they have begun to change their business model now and they no longer sell a property until it has been permitted.  

how would they know.. unless someone is doing a refinance and in conversation tells the escrow agent what happened..I have personally done well over 100 sub toos and my dad did over 500 of them when i was a young agent back in the late 70s and into the early 80s when rates were even worse than today this is not something that anyone Myself or Pace made up as a new model. its not.