Ex.

Over the next few years me and my ex were living and fixing it up.

I'm an Cali Ex-pat too so I know SD prices but those seem really high.So the tub is 'rocking'.

Knowing what you are needed an income property to do inside your portfolio will help you narrow down what initial steps make the most sense for you. 3) New construction can have rate buy downs paid for by the builder and new construction comes with a lower repair and cap ex cost the first 10 years (usually). $450k is a big number when only $2500 in rent is coming in the door.

The cash flow is also eaten up by cap ex events (which are absorbed far easier in the higher barrier/more expensive locations where cash flow may not appear as strong).

Cap rate = NOI / Purchase PriceTotally guessing here but assuming you and your wife can rent your current unit aka the main unit for $1,800, that would make your total gross monthly income = $4,433 $4,433 x 12 = $53,196 Annual IncomeLets assume 30% annual operating expenses for taxes, maintenance, cap ex, property management, vacancy...$53,196 - 30% = $37,237.20 NOINow lets say you'd do this work to add the ADUs if you can get your property's value up to $800,000, that would mean your property is operating at roughly a 4.65% cap rate... is that good for your area?

The savings had the security deposits and monthly deposits for longer term items (cap ex) like a new appliance, or paint, or roof.

Perhaps the property doesn't appraise as well as you projected or there are unexpected operating expenses or cap ex that's incurred in year 1?

Then we had a bunch of cap ex (roof, water heater, appliances) all needing to be replaced within a 2 year period.

Ex: Real Estate Rookie e-book, I candownload Rookie Forms from the Book, but I get that error I mentioned whentrying to download the Readiness Checklist and the Templates and Worksheets.This same thing happens on all of my books....about 10 of them.