Yes check with the county to make sure permits were pulled for the addition.Make sure this is permitted to be a STR with the bedroom count you expect.Something may be unpermitted if they still have a 2 bedroom septic tank.

Given my experience in the field (5 years) not much but still counts right?

Searches, brainstorming, writing, analyzing, counting calories (I workout a ton), cooking recipes, reminders, EVERYTHING.  

- Renting it Out: The likely rent I'd get in this area will cover half my mortgage payments at the moment- Add Square Footage: Taxes will likely go up significantly- Build an ADU: Overall ROI will likely not offset much since it'll still be counted as value tied to the one house- Selling Off Land: Sits on .5 acre that I might be able to sell.

Hi @Chris EhrhartThere are two prices in a negotiation, one is the offer counting multiple factors, mainly Cap rate and visible repairs when is a investment property.The other one is when you do an inspection.You listed 5 items here so I'll comment on each one:- Electric panels, this is likely to be found during inspection.

If not rented at fair market rent, this property will just count as your residence, not a rental for tax purposes.Structuring the property under an LLC or land trust could trigger a due-on-sale clause, so check with the lender before proceeding.To minimize risk, consult a CPA for tax strategy, weigh financing costs, and draft a legal rental agreement.

Unless maybe that is counting people's $1M residences. or average price of homes in Austrialis is probably 1 mil or more. at least in the big cities

Having said that, I agree that it also depends on your bathroom count.

Back to the DTI, if you want a quick down and dirty way to do it, start with the bottom line 24 on the 2024 return, then add back in Depreciation (line 18), and possibly interest expense (lines 12 and 13) IF it's also counted against your debt in the liabilities section of the application.

Let me count the ways!