I received a call from someone who you could tell had very little knowledge of multifamily investments and asked for some proprietary financials.

Chris, Everything relative to your financial Opinion. 

Since you already have an offer, it’s not really about whether the property will sit for six months, it’s about whether keeping it makes financial sense.

ADU construction is not 1:1. meaning investing 250k into your property by ADU will likekly not increase your property value by 250k.

Simply put, many of these distressed properties were put under duress by the former owners financially, not necessarily the location.

The garages will have 3% increases year over year once leased.

@Kaleb JohnsonRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

As well as financial statements.

For liability purposes our financial advisor is recommending creating a LLC for managing all of the STR stuff.

in a stick frame market and one of the cheapest markets to build we build with margin at $190 or so a square foot. that will go up over time about 5% or 10% a year to keep up with new build price increases. we are buidling a 3 story walk up and source some of the lowest priced crews.