I am sure many are actually purchasing real estate with these unsecured loans but the investors are not really benefiting from the real estate, they are merely making a fixed return and providing inexpensive equity sources to those who actually own the real estate.

By having additional parcels, investors can generate more equity and value compared to simply adding an ADU.

Selling at breakeven (excluding cash flow) isn’t necessarily a loss.Look at how much equity you've built and the true appreciation of the property.

However, in most markets I would assume an additional full bathroom would not only command higher rent, but would increase the equity and appreciation.

Research the Market:It's essential to comprehend the local real estate market before you start flipping residences.

Investment Info:Single-family residence buy & hold investment.

*Strong Economy – Phoenix is sustaining a healthy housing market, with thriving sectors like technology, healthcare, and finance continuously recruiting new residents and providing them with job opportunities.

Since you and your partner are unmarried and own a primary residence together, tax treatment of deductions (e.g., mortgage interest and property taxes) requires careful allocation.

@Karolina Powell Just some high level thoughtsDeal #1:This is probably something I would only be interested in if there's equity to be had right off the bat or soonish.

My plan is to maintain the status quo and benefit from annual rent increases and equity gain as the tenants' rent covers the mortgage.