We decided to buy a property in Los Angeles first so we transferred our rent payment to a mortgage payment while receiving a tiny bit of income and pretty sizeable returns over the longterm.

Other little stuff, like the bathroom and the lock on the door are easy tiny issues, and the electrical panel is a maybe, only if my electrician thought it was necessary.$3500 credit to me sounds like more than enough money, assuming further investigation didn't reveal much else, obviously I'm not privy to the details of the property.

@Franklin Tarter  what is B and C class in Portland is not to be confused with B and C in most of the mid west or the cash flow markets that are subject to this discussion.... our worse neighborhoods in PDX would be laughable in comparison with the worse neighborhoods in the cities that are mentioned... other than a tiny pocket of felony flats here IN  PDX there is no D class at all... and C class still sells for 150 to 250k if you can call it that.

If you take the same property, but now values go down 20% instead of up...you'd lose 100% of your original investment even though the property value only dropped 20%.As mentioned, it's a useful tool, but financing is just a tiny part of real estate investing - you need to focus on a lot of other factors to make a profit.

I suspect that the partial culprit is an enormous tree in the tiny backyard that is maybe 6 feet from the house, but don't know much about this type of thing.

In the next 6 months (or sooner) I plan to convert the workshop space into a studio/tiny house so I can downsize and rent out the "big" house.

The premiums I've paid vary substantially, from next to nothing, to 50% or more on the tiny parcels, but lets say, average 8-10% or so.So this means you'll likely lose a little money if it gets redeemed the first year (many do). 

In addition I live in a teeny-tiny travel trailer in the mountains.  

We'll be building tiny houses, tree houses, yurts, domes, etc. 

Hi there,
I am trying to assess what would be the added value brought by adding an ADU to my property.
Right now I am getting quotes between $300-375/sqft to build a roughly 450 sqft 1bed/1bath pool-house on my prop...