Looking at 50% LTV currently.If your borrowing is TRULY at 50% LTV, a little creativity on your part should uncover potential lenders.  

We get traffic studies done to confirm that the roads can handle the potential traffic.

It just eats up a good portion of the lot area, which could potentially be used for another unit or a much nicer outdoor area. 

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

So someone who is looking purely to maximize potential return (and has unlimited time) is unlikely to find this a good fit.

My recommendation would be to choose potential markets - in several price points - that have strong rental demand and year-over-year rent increases and that also are in markets that are appreciating. 

.- Loss of Alcohol Sales: Price Chopper previously sold alcohol but stopped in recent years, potentially impacting revenue.- Triple Net Lease Costs: Rising property taxes, borne by the tenant, add financial strain.- Increased Competition: Discount retailers such as Walmart, Target, Aldi, Dollar Tree, and Family Dollar provide alternatives that attract budget-conscious shoppers.A Closer Look at Worcester’s Retail LandscapeA brief examination of supermarket properties in the area highlights financial and logistical challenges:- 29 Sunderland Road: Built in 1960, this 46,050-square-foot property sold for $4.1 million in 2022.

Overall we both would win it seems quite big, esp w interest only the cashflow would be positive. he didnt really like we are doing an appraisal as he might be thinking he can pull a fast one on us w his price tag.. again happy to overpay as i see the potential but obv not outrageously. 2) Can principal be payed down in interest only seller financing? 

By potentially reducing your property’s taxable value by up to 25%, it can lead to significant savings on your annual property tax bill.

They use leverage in some of their funds, which can increase returns, especially if they have a low cost of capital (but potentially increase risk and trigger UBIT issues).