To clarify, I want help on figuring out how to pencil a deal that has positive cash flow.

Next step is typically to file the action at the courthouse, like you said. 

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

It sounds like you’re in a great position to succeed, given your extensive renovation expertise.As a fellow real estate investor, I completely understand how challenging it can be to choose the right design elements, especially when you want to make a space appealing to potential buyers.

@Robert StephensonYou’re in a great position!

Unfortunately, while all the online places area great sources of information, you are much less likely to take action, or find someone to shadow, when online in a forum. 

We pride ourselves in keeping the forums positive, helpful, and focused on real estate (please, no politics, religion, etc.).

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

The country's continuous population growth, coupled with its high demand for urban housing, positions its real estate market for steady, long-term price increases.Over the past decade, cities like Berlin and Munich have seen remarkable growth in property values, with an increasing number of investors betting on the continued upward trend.

There are guidelines and guardrails, but a challenging deal can have positives and a golden deal can have issues below the surface.