An ADU could rent for an additional $1,200–$2,000/month, depending on the local market, potentially doubling the property's cash flow.

The area has seen growth in both the residential and rental markets, making it a potentially lucrative investment.For financing, you can explore options like conventional loans, FHA loans (for owner-occupied properties), or even local programs that might offer lower down payments for investment properties.

Quote from @Robert Jones: @Kristi Kandel what market are you in? 

It sounds like a single family house where you will be living in the house(personal use).Therefore, you may not be getting the tax benefits you think you are.Consult an accountant.I am not sure why your sister would agree to this as well, she is losing $170,000 in this transaction and she faces the possibility of you increasing her rent.You also have to charge market rent or close to market rent or it is all deemed personal use.

It has been on the rental market for about 55 days and the average in the area is supposedly 36.

.): ~$35K (assuming 8%)Total Cost: ~$375K–$385KProjected Profit: $65K–$75K before taxesThat is a decent margin, but this being a two-year project, you need to be sure the market doesn't shift downward, and that you have a buffer for unexpected costs.3.

Depending on the condition you'll command a better price on the MLS vs. off market.

It’s great to hear that you’re already active in the Southern Maine market.

Market Conditions Aren’t Always in Your FavorHouse hackers often assume their property will appreciate and rents will rise, but that’s not always guaranteed.

Don’t forget. 2024 rent cap was 8.9% so you may never get “market rent”.