After the crash in 08 he retired, moved back to Oklahoma, and now wants to come out of retirement and start building again.

Seems like an outstanding opportunity for those who see the possibilities, can property evaluate the risk/reward opportunity, and can execute.Every suggestion that I had in my post I believe has large possibilities but because the San Jose ADU lot split rule is already approved, it seems like an almost cannot miss (assuming no RE crash).  

These are the track record of good core-based GP2022 average exit 0.40 bps with 10 year fixed debt 50% LTVAs of 2024 we still have negative spread, so better wait til good market condition arrives.

Buyers get spooked easily, plus every year the process gets more complicated with financing, appraisal and inspection issues (which can vary from lender to lender) that could be easily overcome threatening to crash deals without someone experienced in there herding all the "cats" (lol- elements) in the deal to a successful close of escrow.Also most of those comps you are seeing-maybe even all of them- have had a commission and some fees paid by the seller, and the appraisors are aware of that.I hope your home sale goes smoothly.

I heard prices in Austin crashed and investors were impacted heavily, how true is this?

As people are afraid to get into the market thinking they can't make money, or a crash is coming, etc., that is exactly the time to be getting in.

Overnights are very very transient and come with unique challenges, think about these like a Motel 6, people arriving at all hours, tired, just need a place to crash as they make their way to their final destination.

If cash on the sidelines comes into RE-- it's cause there is a crash or a massive correction. 

Despite the rise, national inventory is still 30% below pre-COVID levels.Mortgage MarketThe market is convinced that the first rate cut will arrive on September 18, and Federal Reserve members haven’t been actively trying to quash those hopes.

When enough people arrive at that same conclusion there is downward momentum and really no bottom to the mess.