Your PSF will be much lower than it would be adding one small unit per lot.One thing to note is more than 4 units or more than one ADU changes the financing that is available.  

Essentially lower my taxable income by $117k?! 

He said it kept the bank from having to execute the eviction process, it salvaged the owners credit by not having a foreclosure on it, and the buyer gets it a much lower cost, because of the leverage of the impending foreclosure.

FHA loans can be a good option here, allowing you to put down a lower down payment.## NetworkingNetworking is key in real estate investing.

Alternatively, if I can find a lower cost single fam home where I can cash out 100% of my investment I would do that but those have been harder to find recently. 

This can then be used as a negotiation chip in order to lower the price of the property.

But occasionally we have issues and tenants need to be asked to leave or just decide to disappear in the middle of winter and it sucks.The worst part is I find the quality of tenant interested or willing to move this time of year isn't the greatest either - often times there is a reason they have to move right now since most landlords don't like ending leases this time of year.Either lower your rent or just hang in there.

@Paul Lucenti It is common to equate acquiring more properties to scaling and many rely on buying lower tier market/neighborhood section 8 rentals to achieve this goal.

My mark up is always lower than the direct lender because I don't spend money advertising during the Super Bowl or buying a private jet for my CEO, and we don't have layers of management we need to pay.

I tried calculating value based on NOI and cap rate (see below) but I'm new to this and the value seems to come out lower than I would expect.