By emphasizing your qualifications as the basis for your decision, you steer clear of potential issues related to discrimination.

Like most things, the value of your ADU is relative to the area you’re investing in.

Basically its a big credit card that I can now use for any business related purpose, in my case Ill use it to do more deals.So here is where the 8 unit comes into play.

Leverage is a big factor in real estate investing, as investors can control large assets with relatively small down payments, increasing their potential returns (and risks).6.

They worry about a large homelessness crisis during a pandemic when homelessness can easily be avoided by simply moving in with relatives and family members, taking on roommates to share the cost of rent, or moving to a cheaper apartment.Now a lot of landlords are going to be out of rent for an entire year, not to mention depreciation on the properties due to neglect and damage and wear and tear which these landlords will have to pay out of pocket to fix if they want to sell their properties in the future or rent it to someone else once the eviction moratorium is lifted.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Startup costs related to the LLC or marketing may be partially deductible in the first year, with the remainder amortized over 15 years.This post does not create a CPA-Client relationship.

This relative to my situation, is a super modest amount of funds.

If that is a stretch as to your qualifications, I would not recommend this as it would with relative quickness go to the attorneys to move forward with drafting, inspections, title search, etc.

A good friend of mine has a real estate related service business he wanted to scale.