However, I had to subordinate the sellers note to 2nd position (hint: set up that language in advance to streamline the process, if that's the direction you're going to go).Since the ARV was high enough, and the potential income would support the mortgage and expenses, it all worked out. 

Start the eviction process.

For example, our process on setting fees and splits is to underwrite conservatively for LPs to get 80-100% ROI on their money in 5 years.

We have sold a few properties and experiencing this process from the seller's side double underlined that for me. 

Also your permitting process, type or land, grade of land, if underpinning is required will all play a factor into your cost. 

Is it worth it to go through the proper process with the city and run the risk of a huge expense to make this a 3rd unit? 

But, as my wife and I have done this over the past 5 years, we have found it moves less and less each time, and that we are essentially living the life we envisioned 5 years ago when we started this process. 

With this set up, the turn-key provider can walk with you through this process and help advise you on decisions, which can be extremely beneficial being your first investment property or your 100th property.

I have renovated my own home (which I now rent out), and I've begun the process of building my DREAM community - a pocket neighborhood in the foothills of Colorado.

I recently completed one on a multifamily property and found it to be a cost-effective approach.That said, there are a couple of additional factors to consider beyond the code differences between a garage conversion and new construction:Coastal Overlay Zones – If your property is in a coastal overlay, building a ground-up ADU may require Coastal Commission review, which can add time and complexity to the process.