Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

I think that it is all depends on your long or short term goals (Or both...).If you are a long term investor (Buy-n-hold) who want to accumulate wealth over time, 20% is probably the way to go, however, in many cases it is harder to cash flow.

It has many short term payouts but if that money is reinvested back into financing more flips with a long term strategy of capital accumulation, it can lead to other opportunities of producing passive streams of income such as hard money lending.

It all depends on your goals and how fast you want to grow and scale from here.I would look out how long it took you to accumulate, renovate and stabilize 60 units.

I could use the excess $534 a month to pay for any repairs and let it accumulate.  

Absorbent materials such as carpeting, drapes, clothing etc. can accumulate vapors during the meth preparation.

Snow has melted and refroze and is 6" thick ice, grass isn't cut and the city issues a citation, garbage bill not paid and now you have accumulation of trash which can attract rodents or upset neighbors.

Contribute the minimum needed to get the full company match (5% contribution in my case ($7,500)).The model uses these assumptions:$400,000 current balance$150,000 annual salary, paid monthly.25% federal tax bracket6% state (CA) tax bracket12 years until retirementstock investments earning 6% annual returns (very conservative)As the chart below indicates, option 1 accumulates $271,514 more dollars.

Real estate can provide monthly cash flow, wealth accumulation, and tax savings noT available with any other type of business.

Seller stalls past 48 hr acceptance date and accumulates a few more offers.