I am hoping this number is extremely conservative given that our contractors, inspector, and realtor walked it as well. 

The information contained in this post is not to be relied upon.

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.

Sara,I see this a lot and I always ask if you know you are going to refinance in the long run to consolidate the Heloc why not just do a Cash out refinance instead. 

Get out of your comfort zone.

What do you think of my essentially 7-word answer? "It's like selling pizza by the slice".  Too simple? Just right? How would have you answered? 

Purchase price: $465,000 Cash invested: $80,000 Checkout my Airbnb here: airbnb.com/h/madeirabeachoasisSalt Water Pool & Hot Tub: $60,000Tiki bar with electrical hookup: $3500

this is a direct relation to lack of inventory.. new construction on many markets is as robust as its ever been.. we have had spectacular years the last 3 years of course during covid was tough with supply chains but my 500k house I am now selling for 700k and my build cost have gone up by maybe 100k.. so record profits for us.. 

Or is this type of deal that you savvy investors out there would scrap and try to be more aggressive?

This approach could keep things straightforward while accommodating their need for housing.