Risk Mitigation StrategiesThorough due diligence: Always conduct thorough due diligence on any property before investing, including inspections, appraisals, and market analysis.    

There are tons of filters you can use including out of town owners, single family, multi fam, equity percentage…etc. https://www.melissa.com

.: I didn’t realize the closing statement items were handled a different way and not included on the SchE.

Its pretty specific to Oregon I dont see these in other states i build in.. although it could just be included in the settlement statements as a matter of course..

(myself included).

It seems like there's an issue at least once a month that I must pay for, on top of trying to budget to fix several leaks (roof included), radiator not working, no shower in one unit, etc.

Purchase price: $640,000 Cash invested: $220,000 Purchase price $640,000Got it at this price because there is a non-paying tenant in unit 2 (rent value $3,500), we're in court Rehab $60,000All in cash (rehab plus down payment) $217,500Rehab included ground level basement and 2 parking spot drivewayMonthly cash flow $1,500 ARV $950,000Equity $470,000Refi cash out (August 2024) $150,000 (used to buy new rental)New monthly cash flow breaking even (non-paying tenant still in unit 2)New equity about $200,000

While this can maximize leverage and ROI, challenges include getting lender approval for seller financing, high carrying costs, and the pressure of short-term loans.

Alternatives include using a 1031 exchange to buy a new rental property or completing the exchange first and then doing a cash-out refinance to fund the ADU.

And thats not including how long it takes.