The market appreciates 3% per year.Pay cash for one house and rent it for $1,500.

Do the math and see if an ADU is worth the cost and effort.https://www.biggerpockets.com/blog/rental-property-cash-flow... 

Thanks in advance for any insight you are able to provide. 

Also at some point I want max cash flow and minimal risk to that cash flow.

So they would have to have the cash for the downpayment to begin with.)If they get 5 individual loans this is EZ Peasey.

What you’re suggesting is not cash flow, it’s return of principle, giving her her own money back  If she sells with your deal.

Thanks in advance!

Purchase price: $530,000 Cash invested: $100,000 My journey into short-term rentals began after years of investing in long-term properties, but it was a podcast that opened my eyes to the incredible potential returns of STRs.

My underwriting would have this large negative cash flow for 7 years.I would do a thorough underwriting but want to show using quick math the issue so I will use the 50% rule.  

Is there debt on the property or are you doing all cash?