Quick rules of thumb on an ADU return on investment, can you achieve the 1% rule with gross rent?

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

If your debt is student loans at 6-8% interest your best bet is to pay them down/off as fast as possible as most investments will achieve a similar result but that is gross (before taxes) not net.  

And like any person running a business knows, gross revenue doesnt equate to how much I make. 

I took my duplex from $2,450/month gross to $5,800/month gross. 

If you make $150,000 as a W-2 and you have one rental that grosses $30,000, it'll just add fuel to the IRS fire.

Then the debts are "Omitted".This is usually more beneficial for a person who receives W2 income from an employer and wants to exclude their W2 income from being hit by the credit cards, automobiles or mortgages being paid out of their business checking account.There are also ways to gross up some of the income but some lenders have overlays and hit you with things rather than allowing add backs.

You should be able to negotiate that, though.It's pretty common for high-end property managers to charge around 10% of gross revenue, plus one month's rent for placement, and some sort of renewal fee.

Final figures: 76.8% occupancy and a gross income (not booking value) of over $120k across all channels. 

Once the remaining 3 units are occupied, the projected monthly gross income will be about $7,800.