Make sure you know the value the ADU will add to the property before building the ADU. 2) the financing on an ADU is typically far worse than for initial investment property acquisition or is often not leveraged by the ADU (HELOC, cash out refi, etc).

The type of analysis I run is a modified risk adjusted return analysis based on an analytical technique taught to be in an advanced finance class by a Professor long since retired.  

Cashflow is not extraordinary because I financed on a 15-year mortgage.

Purchase price: $325,000 Cash invested: $2,485 Sale price: $335,000 Low upfront cost due to creative financing.

@India H.When you're diving into real estate investing, especially through auctions, it's essential to have your financing and structure in place.

Personally I like the personal finance aspect of investing and I feel more in tune with my business doing the books myself. 

Quote from @Mary Holland: I'd love to hear about your experiences and how they compare to other types of commercial real estate financing.

Door knocking and sit down negotiation How did you finance this deal?

How did you finance this deal?

All 17 or however many sellers want to sell, and we've agreed on terms for seller financing, but the problem is no one cannot get in touch with the last reminding person.