Totally understandable that you may have time to commit to it, as it is extremely hands own.

Sorry to all you handy men (I am not one of you…)Raleigh’s website goes on to say “a licensed NC General Contractor is required for projects with a total project valuation greater than $30,000.”Your ADU MUST NOT be on wheelsOnly one ADU is allowed per single lot unless located in a Frequent Transit Area (as referenced in UDO Section 2.6.3 or 3.6.2).

A line of credit won’t commit you to a monthly payment unless you use the money, so you can avoid paying interest when it’s not in use.

That is our commitment to our investors. 

If you forget, you face massive fines.In a small partnership, you might be redoing this paperwork quite frequently. 

How are you managing your properties in that area given that property management company seem to be extremely unreliable and seem to go under quite frequently 

I do see listings come on frequently and think there’s a steady inventory.

Hi Jeffrey,It sounds like you're in a great position with your rental portfolio and cash savings, and I admire your commitment to keeping your investments!

But either option may work, just make sure the numbers work before committed to anything.

@Tove Fox - Residential Real Estate InvestingPros:Lower Entry Costs: Easier to get started with less capital required.High Demand: People always need homes, making demand relatively stable.Easier Financing: Mortgages are generally easier to secure with favorable terms.Simplicity: Easier to understand and manage, especially for beginners.Flexibility: You can use it as a personal residence or rent it out.Cons:Tenant Turnover: More frequent turnover leads to vacancy and more management.Lower Cash Flow: Income potential can be modest compared to commercial properties.Emotional Buyers: Residential prices can be influenced by emotions, leading to price volatility.Maintenance Burden: Landlords often deal with repairs and maintenance, which can be time-consuming.Commercial Real Estate InvestingPros:Higher Income Potential: Stronger cash flow and higher returns are common.Long-Term Leases: Tenants often sign longer leases (3-10 years), reducing vacancy risk.Professional Tenants: Business tenants tend to take better care of the property.Valuation Based on Income: Prices are based on the income the property generates, not market emotions.Shared Costs: Tenants often cover property expenses like taxes, insurance, and maintenance (via triple-net leases).Cons:High Entry Costs: Requires more capital or partnerships to get started.Complex Management: More expertise is needed; you may need a professional property manager.Economic Sensitivity: Commercial properties are more sensitive to economic conditions.Challenging Financing: Securing financing can be harder, with stricter terms and higher interest rates.Zoning and Legalities: More complex regulations compared to residential properties.Key Differences:Risk: Residential tends to be lower risk, while commercial offers higher rewards but with greater risk.Management: Residential is easier for DIY investors, while commercial properties usually require a team.Scalability: Commercial properties are easier to scale, offering more potential for significant cash flow increases.