The cost to build will be significantly more than the amount of “value add” of an ADU putting you in a negative equity position.

You either have to earn extra money via sweat equity (working as your own PM or do the renovation work), or you have to be ok with a negative cash flow.  

This ensures you have a proof of concept to show the commercial appraiser.  

Not looking for either a positive or negative NET population change.All topics and issues even in REI, I believe in using both Push/Pull tactics.  

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Recognize buying rent ready units have very thin margins and most properties purchased off the mls will have negative cash flow.  

Hi Julia,Do you think the concepts from the BiggerPockets book The Book on Rental Property Investing: How to Create Wealth With Intelligent Buy and Hold Real Estate Investing is outdated? 

Does the California government believe that wholesaler activity around the fires would only produce a net-negative?

I wanted to get my feet wet in the commercial space as I look to grow my portfolio and negate risk with more units.

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.