Add prop tax, insurance, general maintenance/cap ex, P&I, misc and I do not see how any realistic underwriting can show this unit producing an acceptable return.  

It would still be based on the revenue it produces.

If you purchase a rent ready RE investment this could be 0%, but at the opposite extreme a good brrrr can produce the now elusive infinite return (I have achieved this on most of my RE investments but believe it is very challenging in the current market to bp not be cash negative after the refi to extract the added value.I expect to make an offer this week.  

I am an aspiring new real estate investor based in CT looking to use the power of real estate as a wealth building tool and income producing asset class.

This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

Why would one choose value adds that produce lower returns than can be achieved in other markets?

However, you will find it difficult being that both of you are W-2 with your main activity to produce income being outside the real estate profession.

Taking pics of the bedrooms where you see the door/doorway makes the room itself look tiny.5) video might help here though my camera does not have a wide angle video option.Summary: most people won't read descriptions first.

Once that extra rental started generating income, he realized the higher interest rate was just a temporary hiccup on the way to bigger returns.In your case, maybe look at a structure that keeps your best cash-flow property on a lighter refi (say 50% or 60% LTV) while you go a bit heavier on the one that’s not producing as much right now.

It's more important to own investment income producing property that generates at least 10% annual ROI than it is to own where you live.