With the high construction costs nowadays it's hard to add that much value, plus ADU's don't sell at the same $/sqft as the regular house, and there's not a steady readily available comparable properties to base valuation so the easiest method is replacement cost.I hosted a Meetup and wrote about ADU's on my website.

I think finding people you can speak with regularly & are in similar markets makes the biggest difference.

If that is the case, then mortgage interest on a note is passive and not subject to UBIT.UBIT applies when a tax-exempt entity engages in a trade or business on a regular or repeated basis.Passive income not subject to UBIT includes royalties, dividends, interest, rent from real property and gains on the sale of an asset that has been held to produce such passive income.Trade or business subject to UBIT generally consists of services or buy/sell transactions. 

It's probably like any regular flipper where they have to assess the cost to hold the property, the cost to evict, and then appropriately price the property.  

Surely, they'll have contractors they work with on a regular basis.

I will most definitely be referring to this checklist with my regular lender, although I know it won't change anything.

.), how the title process/paperwork differ from buying a regular property, and the pros and cons of this method?

Greg:    First, do not get discouraged by anyone, someone else is doing it so you can, not going to be easy.If not done already I suggest to look into this:Enforce that PM uses a great website for rental screening, ones with a background check and choose the best tenants possible.Review you leases to close any pitfalls and enforce the lease to the T.Keep the units in good shape and keep extra cash reserves ( fixing + trip expenses )Tiger than normal lookup on the PM ( have second PM line up ), vacancies, unit showing costs, repairs, fees, etc,  require a once a week normal operations report and a once a month full operations report.Family, friend on virtual assistant that regularly drive by the property and reports to you, or if cash flow allows and deem beneficial you can install security cameras and remote view activity on the property, nowadays there are lots of options.Check if feasible to get a home warranty plan for the units so some pain issues are self-managed by the tenant via a phone call to the warranting companyIn which city/state is the property? 

Hey Christian,I went through the identical situation on my first purchase back in april, tenants were on a mtm lease so after i closed on the property i just had to give them a notice that their lease would not be renewed at the end of the month and that i would also give them an additional 30 days to vacate after the final month was up. 

Do visit the site regularly and make sure the job is on schedule. 4.