Buying a second home to rent out is a solid strategy, but be sure you understand the cash flow, including mortgage, taxes, and potential vacancies.

The property investment in total is estimated to be 105K with $1600 per month cash flow when complete.

Cleveland is cash flow, we do build to rent in columbus urban infill where prices are the highest and land prices make sense. rents are good and on a DSCR can pull out cash and do again. easy scalable strategy and sell the portfolio eventually 1031 into something greater.

Really expedites the time it takes to reach FI when you can completely eliminate your housing payment and get into multis for such little down and start building equity/cash flow with each one.

That being said my residential rental will have a positive cash flow of $500 and I plan to rent out this other side of the duplex immediately and will have a balance of 600 to cover for the mortgage.

Our portfolio currently cash flows, but cash flow isn’t our top priority right now since we plan to use this portfolio to supplement our retirement in 12 years when I leave the Army.My biggest challenge is committing to an out-of-state market.

Would the potential cash flow of the ADU have an impact on the value of the property?  

Trust and reputation builds and deals just flow from that...

Hi KyleThe way most real estate for sale is priced these days there’s little to no cash flow after debt service with 25% down - borrowing a down payment would put the investor in a negative monthly position. 

Always smart to see the bigger picture and future cash flow potential!