If you’re “uncomfortable” with $16k in debt, you’ll probably be very uncomfortable when an opportunity arises to invest $100k and take on $900k in debt for a $1 million acquisition  that has the potential to supercharge you’re wealth building 4 times.  

Acquisition, execution, disposition.

Over 20 years ago when I started a hard money fund a “potential” client asked me to evaluate a potential acquisition for him, which I did.  

When interest rates went up, I was having to leave too much capital in deals in my target market, usually more than my acquisition outlay and rent-ready repairs.  

I'd like to properly account for this in my cost for acquisition and ownership for roi use cases.  

I've putting my money into public markets and HYSA but once rates drop I need to re-think the HYSA.Other investors I know are doing STRs in California and OOS, partially because of the IRS loophole with STRs and being about to offset active income, some MTRs (renting out to people displaced for insurance reasons such as a fire, other reasons, not so much travel nurses like during COVID), buying an apartment complex together with 3 to 4 people, working in the real estate industry (acquisition, property management, lending, becoming an agent, etc).

Sometimes my title company will allow me to do them simultaneously without any funding.... which is ideal.The hard money lenders I am working with wont allow funding for the acquisition of the LLC because they are wanting to be sure the take-out loan for the investor is 100% set in the borrowers name.

Time to sell is when the projected IRR on an existing property is lower than the projected IRR on a new acquisition.

Building small units in small unit count is some of the most expensive development.  2) the financing on an ADU is typically far worse than for initial investment property acquisition or is often not leveraged (HELOC, cash out refi, etc).

Your acquisition fee can be "exchanged" for your equity contribution.