During this time you are not generating any return from the money invested in the ADU.

The BRRRR strategy is a systematic approach to real estate investing that revolves around five key steps:Buy: Purchase a property, often below market value, that has potential for appreciation and improvement.Rehab: Renovate the property to increase its value, make it livable, and improve its rental potential.Rent: Find reliable tenants who will pay rent, allowing you to generate consistent cash flow.Refinance: After the property is rehabbed and rented, refinance it to pull out the equity you’ve built through the renovation.Repeat: Use the cash obtained from refinancing to fund your next investment property, starting the cycle again.Step-by-Step Breakdown of the BRRRR MethodLet’s take a closer look at each stage of the BRRRR strategy to see how it works in practice.1.

If you lose 20% to the PM, then you still have 30~40% profit. 

much better. we build a stacked triplex in Columbus Ohio and our costs drop significantly to $130k a door on a stick framed with profit in the urban core.

An LLC shields personal assets from business liabilities, while S-Corp taxation allows you to reduce self-employment taxes by taking a reasonable salary and distributing remaining profits as distributions, which aren’t subject to payroll taxes.

Could be very profitable if you made this your job though.

However, employer profit-sharing contributions (up to 25% of W-2 wages) are not subject to FICA taxes and do not appear on the W-2.To stay IRS-compliant, ensure your Form W-2 and Form 941 properly reflect deferrals, and maintain a reasonable salary to avoid red flags.

Get a roll away dumpster too- the amount of packaging waste the setup generates is staggering!

If the investor would like to sell the property, we will split the profit of what it sells for 60/40 (the investor getting 60% of profit while I receive 40% of profit.)

Was sold above the asking price                   within days of listing.High ROI: Achieved a 50% return on investment due to low renovation costs and increased sale price.Investor PerspectiveRecognized the potential others overlooked by seeing beyond the property's initial appearance andm aximized profits by investing wisely in visible, impactful areas.