This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

Things they did bad which I wish I had asked more information about:Never involved in the screening of tenantsThey recommended keys for cash by waiving the rent amount buy only collecting fees which they would get not meThe cost to evict is 750-950 yet other companies told me they will include eviction in the priceThe tenant didnt pay in full last month and I was the one calling out to them and asking questions then a few days later I get an email saying something happened with the tenant and they are investigating.You get passed from person to person every week or so.No one told me when the construction was complete and so the house was ready for a week and the post to zillow and other sites was not done.It took them another week to take pictures and then another week to upload it.I was paying 200 dollar a month electric bills while the house was vacant because they left the AC running in the empty property.

Banks won't usually touch it even if buyer is qualified to purchase, banks don't like to finance small purchases, most have minimum amount they will finance (around 100K or higher).

Here's an easy prompt for it:Please calculate how much I can afford for a duplex using FHA current guidelines of debt to income ratio, with one side being rented currently for "XXXX" amount.  

The only item I would suggest is double check the payment terms of the your HELOC... in particular, can you pay interest only or are you required to pay a portion of principle each month on the amount utilized.

My loan officer just came back to me apologizing for the oversight and informed me that the CD will reflect the right amount for cash to close.

They are far better at tenant selection than the average landlord that screens a few people per year.Efficient Rent Collection & Enforcement: I spend a ridiculous amount of time answering questions from investors that have no idea how to handle late rent, unpaid rent, and other pay issues.

Quote from @D'Ann Melnick: Saw this was an old question, but it came up in search - this is all part of the rent stabilization laws passed in 2024 - https://www.montgomerycountymd.gov/DHCA/Resources/Files/tena...The pet deposit cannot exceed $300 and the total amount of security deposits collected cannot exceed two month's rent.

As for soft costs, you’re looking at a fair amount for a condo conversion-there are legal docs to have drawn up, reviews, surveys, recordings, setting up the HOA, reserve studies etc.

I work on the disposition side of wholesaling and the amount of inflated ARV's I see blows my mind.