Make sure you know the value the ADU will add to the property before building the ADU. 2) the financing on an ADU is typically far worse than for initial investment property acquisition or is often not leveraged by the ADU (HELOC, cash out refi, etc).

Did you use creative  financing on the acquisition and the dispo? 

Quote from @Pat Arneson: I’m looking for someone to help ease my thoughts… California Bay AreaI have everything ready to go for my first flip… financing, financial spreadsheets, acquisition and disposition playbook, design criteria, etc.

I.e. a group that was getting 30+% returns out of a 2017 acquisition with a sale in 2019, should be looked at loosely against other sponsors with deals of similar acquisition date, as general market timing is really going to be 90% of the overall return, with the operations only accounting for a small part of the overall return.  

I mentioned using hard money ($300k), private (100k), acquisition fees, wholesale fees and close to $200k in refi funds.

Consider DSCR loans, portfolio loans, or seller financing as complementary options for acquisitions.

If your market has a significant number of FHA or VA loans with zero to low down payments where a buyer can't afford to pay their agent out of pocket, your sellers may end up cutting off a significant portion of the home buying market, or once they do come around to considering negotiating on BAC, they may feel deceived, and now you may lose the potential for the recurring client that will ultimately otherwise drive your seller lead acquisition cost down.For planning: In a great business, a good rule of thumb is to estimate:100% Gross Income35% Cost of Sale30% Expenses35% Profit <-- very few businesses achieve this, but we're looking at an ideal solutionAssuming a national price average of $300k and 0.6% GCI, you'd be looking at:$1,800 Gross Income$630 Cost of Sale <-- agents/ transaction coordinators$540 Expenses <-- photos/ signs/ lockboxes/ Errors & Omissions insurance/ MLS fees/ liability insurance/ tech fees/ VA admin support/ marketing to get clients for the business (this piece should be roughly 10% of revenue, which would be $54 in this case)$630k ProfitIf your business sold 1,000 of these homes a year, you would have:$1,800,000 Gross Income$630k Cost of Sale <-- agents/ transaction coordinators (you could have 5 agents handling 200 sales each at $100k incomes and TC support at scale)$540k Expenses <-- photos/ signs/ lockboxes/ Errors & Omissions insurance/ MLS fees/ liability insurance/ tech fees/ VA admin support/ marketing to get clients for the business (you're going to est $125k in runner fees alone for signs; $25k+ in signs, $54k in ads to attract clients, $200k in photos, $10-20k minimum in E&O, $2k in liability, and what tech/ VA support)$630k Profit Scale costs will include hiring a managing broker for compliance to help oversee all of these transactions and implement legal changes and training.

Did BofL do a an acquisition/rehab loan and refinance to a DSCR loan?

Too many new investors are focused on acquisition, and they never learn how to manage what they already own.

talk to your CPA.https://www.biggerpockets.com/forums/51/topics/1133534-how-d...as for appreciation - that has more to do with the market and less to do with the method of acquisition.