For flipping you have to be in a viable market that produces such opportunity. 

He assume each unit produces $200 per month cash flow - $9600 per year.   

That is for, if necessary for us to sell our existing home and move to the number one produced, which will be the first "model home".

That is for, if necessary for us to sell our existing home and move to the number one produced, which will be the first "model home".

A primary home is not an investment, as it's not producing you any return other than appreciation which you have access to only selling or taking out loan.

In my state, we have to produce an itemized list of all expenses that came out of the deposit within 30 days of tenant moving out.  

This must produce positive cash flow to protect downside. - Understand the upside of the "rent by the room" strategy- Understand the upside of any repairs that can be made to the main unit. - Understand the cost/value of completing an ADU project- Underwrite mid-term and short-term upside cases as well. 

Otherwise they have to prioritize higher income producing projects.

The REAL issue is the EXPENSE in producing new units. 

A small multi unit in a decent part of town that produces good cash flow.