Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

The entire teachings had gone from Nickersons conservative but a cash flowing small residential property, hopefully for 10 -15% below market, do immediate repairs, then slowly over time improve the property and raise rents, either refi cash out or trade tax free for a larger property.

(larger would require fire sprinklers). 

Build costs are basically double for the larger cabin.

@Philip Beckwith, I disagree with some who think this should only be attempted for larger gross errors and also that you need to hire a company to do it.

@Bhushan Shinkre  I was speaking about fraud against your tenant sort of like passing bad checks, but I don't know if you can do that.  

Leverage Local ResourcesEconomic Development Grants: Check with your city or county for grants or incentives aimed at affordable housing or community improvement projects.Local Banks or Credit Unions: They may be more flexible than larger financial institutions, especially if your project aligns with community needs.Partnership with Nonprofits: Collaborate with organizations interested in affordable housing or sustainable living.4.

Additionally, when underwriting deals, you need to account for the general idea that repairs and maintenance will be a larger percentage of your rent, the lower your rental is.  

Maybe just try finding the deal and sending it over to a larger wholesaler for a JV fee?

Property prices are lower compared to larger cities, offering the potential for higher returns, while the demand for rentals remains steady thanks to a large student population and growing workforce.