While the traditional approach involves buying a multi family property, living in one unit and renting out the other - with rising prices and interest rates; others have considered renting out bedrooms as unit spaces. 

We're in a small town so we ask our bank loan officer who is involved in the community for a CPA reference.

If you want to build equity quickly, some level of hands-on involvement is key.

Also, do not become involved in your renter's utilities. 

I never go off of a flat percentage on anything, I analyze the costs to get to a specific return I target and analyze the risk that is involved. 70% may be an initial metric to see if it is even worth pursuing, but every deal should be evaluated independently based on costs, time and risk involved.

For your first question, writing a scope of work (SOW) involves detailing all the tasks and materials needed for your project.

Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

Thanks for mentioning the KIND of job that someone like me wanting to be more involved in real estate could look for.

If an early buyout opportunity arises, I’m happy to secure a solid return for all involved.

Undoubtedly, the biggest regret is getting involved in the short-term rental market.