This will increase the return above what can be obtained on a passive investment.The flipside of having the power to control everything is that it can be alot of work (and a full-time job if a person is putting in sweat equity).

Supply and Demand: When buyers outnumber sellers, prices and rents rise.Population Growth: Cities with significant and sustained population increases are more likely to see long-term rent growth.Job Stability and GrowthA property’s value is tied to the jobs in the area.

We believe that we are lowering risk, increasing the average expected return, and leaving the upside unchanged.   

Your equity won't likely increase beyond the cost to build because there aren't a ton of ADU comps on the market yet. 

It has gotten increasingly frustrating to deal with inadequacies and complaints from my tenants as far as payment processing.

I guess my challenge right now is to define the strategy and balance all the factors, such as job and population growth (value increase), cashflow (demand & supply market, interest rate, property tax, maintenance cost), and risk control (insurance etc). 

I know taxes and insurance have gone up a lot in that time so I understand that problem but the solid rent increases in that time have been able to cover most of that (at least for me it has worked out).

If you decide not to renew their lease or increase their rent they need a 60 day notice, and you have to notify S8 as well.Outside of those 2 exceptions your tenant should follow the lease like everyone else.

if it is serious I have a couple of questions for you 1) what is the last syndication that you have seen that did not project a majority of the return from value increase?  

We just had a section 8 tenant where the rent increase was approved from 995 to 1295 because of shortage and market rents for similar homes.