Full Occupancy: The property achieved full occupancy within three weeks of listing, with strong tenant demand.High Cash Flow: The property generates $5,570/month in gross revenue and approximately $4,690/month in net profit after operating costs.Effective Use of 1031 Exchange: $300k of the total $420k investment was offset by the 1031 exchange, minimizing out-of-pocket expenses.Long-Term Stability: Designed for durability and versatility, the property is expected to cash flow for decadesLessons learned?

Quote from @Zachary Kessler: Hello all I’m currently hacking my house that has an ADU dwelling that generates income, I bought this property intending to leave and rent the house that I currently reside in (2 bed 1 bath) I currently have a very good interest rate locked in here from 2022 that I don’t want to lose or have my mortgage called due from leaving here, I live here for very cheap with the income from the ADU.

The experience was really bad as I was getting 1-2 year old leads to cold call that I knew had a 0% success rate and I do much better generating leads organically on my own.

It seems like a win-win, especially with the simplified approval process and flexibility for multi-generational housing.

I was looking at nyc buildings website for basement dwelling.I saw the conditions but were confused by 3rd and last bullet (see below).

Obviously this is California spec building and not the traditional RE stuff I come to this website to read about :)I should not have said same as main house.

During this time you are not generating any return from the money invested in the ADU.

@Connor O'Brien CHA does release payment standards that can be found on their website but those are maximums, not guaranteed. 

Today, that building generates enough passive income to cover his annual retirement contributions.You mentioned taking the 10% penalty, which I’d only recommend as a last resort.

It will help a lot if you understand accounting and how the statements are actually generated.