Accessory Dwelling Units (ADUs) are an increasingly popular way to generate additional rental income on an existing property.

. - In the event that you do get a deal, that you do not violate the intent or letter of an increasing number of anti-wholesaling laws, and that you actually receive an assignment fee, you will walk away thinking that your role is over.

However, by placing money in a property that I would like to have in order to increase my quality of life, that can also produce some cash flow instead of being a liability that requires money every month, I can increase my quality of life without increasing my monthly liabilities.  

With no comps in the area for new construction and the highest rehab selling for 205k, building enough at the onset, 4-6 new construction homes, may be the only way to start a neighborhood turn.The city is looking to increase density in the area and add anchor points in near the area to cater to future investment. 

A few months go by and unbeknownst to me the escrow account had now drawn negative which triggers the lender to no longer apply what’s considered a “partial” payment to them, given that I’m now paying less that what’s due given the escrow increase required but not relayed to me even though I expected it at some point.Last month I’m on Zillow looking at the value of my properties.

What does it tell you when a city can't afford to put a few structures with colorful lights for the holidays?    

Since getting started we have learned a lot and have built quite a few systems and processes to increase efficiency and maintain consistency within our business. 

These increases will likely slow to pace more in line with inflation.

Quote from @Greg Kasmer: I'm curious as to your comment on getting back in when the bottom has been "somewhat defined" - Is that defined by rents stabilizing and/or increasing or another metric?

So spending 200k on an ADU will likely not increase your property value by 200k.