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

When looking for cash flowing markets.. a lot of investors, including myself, are looking in cities like Cleveland.

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..

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.

(myself included).

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.

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.

Just because some fellow investor includes it on her or his log, does not mean it flies - unless this investor was audited and won.

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