This initial negative equity position consumes the initial cash flow.  2) the addition of the adu makes the property multi family and likely makes rent control apply.  

The cost to build will be significantly more than the amount of “value add” of an ADU putting you in a negative equity position.

Any MF of the quality and size (50 up) I would have been interested in would have been cash flow negative for the next 5 years or so, even with 30% down.

The "variables" you speak to could mean this is worth every cent of a 5.4% cap rate to "I wouldn't touch this for a 12 cap".  

On the negative side no one wishes to rent long term here!

I know this is an old thread.I'd like to get a more recent opinion of these apps.I think the DFD options is very interesting.What we want to do is endorse one of these for our Real Estate Club in Greenville, SC and have a contest for our members to see who can find the most deals with the software.Maybe try and get a rep from the company we choose to come and speak at one of our in person meeting and also negotiate a longer trial window if possible for our members.

I think it speaks volumes regarding your care to the situation the heir is involved in.

Everyone does that a little when starting out but statically speaking spreading effort into multiple markets is not the best use of your time.

Started looking into tax implications and yeah 6% kills all cash flow we were hoping to get and would have us in negative cash flow (-$221/m to be exact).

@Kevin CollinsIt was great speaking with you today!