@Ram Gonzales IMO, the funding of such a structure is probably better directed towards "social impact" or "community development" investors.

Make sure you know the impact that adding an ADU will have on any rent control. 12) investors seldom include the land value in the overall ADU costs.

This isn’t about chasing high-growth markets; it’s about addressing systemic issues that impact quality of life and economic stability.

@HaiderFord is also talking about the impact on Memphis.Here is an article Ford put out 12/24https://fordauthority.com/2024/12/ford-blueoval-city-set-to-...

The majority of them are in the grind and are not at a place where they have millions of disposable dollars where they realize that buying one more profitable investment won't have a huge positive impact in their life.

The property can only be vacant for so long without notifying insurance so when the prior tenant moved out could be impactful here.

This will impact your costs and time commitment.Risk Tolerance: How much risk are you comfortable with?

That it can impact your 5 star review more than what you can charge on a daily rate.

Your response also got me thinking about how this classification might impact the appraisal if this is not a mistake.Rick 

Additionally, smaller properties (2-4 units) tend to have lower cap rates because they qualify for conventional financing, which impacts the math.If you’re struggling with cash flow, finding off-market deals or considering seller financing could be a good way to improve the numbers.