48,000/300,000 = 16% ROI60,000/380,000 - 15.7% ROIAppreciation:Renovated single family = 33% appreciation potentialConvert to Quad = 31.58%So in both calculations your percentage return from gross revenue AND appreciation is higher renovating the single family.

Also make sure that you're using "per unit" numbers for your rules of thumb because this is much more accurate than simply looking at the expenses as a percentage of the property's income.

The problem with this option is that the equity payout would be pretty close to the same as the HELOC payments.

One issue I've uncovered in this is that they also add a $75 "admin fee" in addition to the percentage based "supervisory fee."

However, as you can imagine, I had a small percentage of my units that were problematic.

are you using ACTUAL expenses or random made up percentages?

A percentage of this number is then used to determine what portion is related to the ADU vs the portion of the property you're using personally.

The name of the game is collect monthly premiums and payout as little as possible.

Why are you focused on negotiating set percentages off of the list price... the FMV value is all that matters.

My criteria is a specific set of numbers with dollar signs in front, not percentages behind.