From day one I treated my involvement in real estate as a real business.This means, I had an advertising budget, a lead generating and follow up process, a back end process and money source and above all an experienced mentor.  

Please reach out if you are a lender or can connect me.5 Bed 2 Full Bath & 2 Half BathExisting Mortgage ~$550,000Home Value ~$1.1+ Mil Depending on the STR income generated from this property, you could do up to 75% LTV on a cash out refinance.

Your specific variable expense assumptions are wrong, BUT you stumbled into them being correct overall.Also, you are approaching this correctly - entering in the numbers to generate a purchase price that meets your metrics:)

I can certainly tell you in SoCal if you had a single family home with an ADU that generates an extra $2k per month in income, end-user buyers will not be thinking "I'd pay an extra $20k for that." 

Having rentals that just pay for themselves or generate excess cashflow you can tap for other things?

Based on my experience of running properties, even if the build were to cost you as much as $600k but you could generate $125k/year, you'd be very happy with that investment. 

That’s why I only advertise on Facebook.When you create an ad for Facebook, in the VERY beginning where you choose the type of ad you want to run(you want to run an ad for “Lead Generation” or “Lead Form”), at the top of the screen somewhere, Facebook will ask you if this ad will be for housing, credit, or something else.

The Numbers:Cash Flow Analysis: Investors typically look for properties that will generate positive cash flow—meaning the income from rent covers the property’s expenses (mortgage, taxes, maintenance, etc.) and then some.

While they cash flow, we've realized we're over-leveraged and want to take a different approach.Our plan is to purchase our first investment property in Indiana, possibly paying cash, with the goal of generating reliable income.

With Baselane, you can easily generate reports for tax time that are organized and ready to hand off to your CPA.