“ cash flow returns” almost always compare horribly to a simple bank CD after you deduct for insurance, prop taxes< vacancy, capex, prop management (or your personal time.) etc etc etc. 

As much as prices have increased, comparatively you still get A LOT for the money.

Also, just compare your listing with the competitor listings.

Hi Kwanza,Bay Tek (650-204-1512) would be a great starting point, but I’d also recommend reaching out to Adler Builders (650-398-9030) and Mission Home Remodeling (415-855-7269) for comparable bids.In San Francisco, you’ll need a licensed General Contractor (GC) to pull the necessary permits.

You will quickly see how you compare in all those categories.

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

Kyle there are a ton of options here that you can compare.

If you compare the sales pitch between Next Level Equity and Goodin Development  you'll hear a familiar tune with the names changed to protect the guilty.

I was comparing large cities to other large cities.  

Here are a few reasons why: 1) No DTI or personal finances considered outside of showing you have the cash to close, 2) Qualify with the rental income for the property you are acquiring (100% of it), 3) rates comparable to conventional mortgages, 4) close under an LLC and no credit reporting for the new loan.