From my experience, when I dive into the costs associated with building an ADU—including construction expenses and financing options like hard money loans—it often doesn’t make financial sense.

I know this is a higher mortgage, especially for a first house, but does it make sense?

If so, you have to see what capital you have to deploy and whether or not it makes sense.

Once you start to find something wrong with almost every deal but finally find one that really makes sense, run it by your mentor to see if they agree it is a good deal.

Makes perfect sense.

Lets start with when it does not make sense: Owner finance does not make sense when the borrower cannot afford the property. 

My intention was to rent all three units (main house and two ADU's), but now I'm thinking it might sense to develop the first two properties and then sell them. 

I’ve consulted several different people and they have told me in my situation as an investor expanding their portfolio it makes more sense to keep the extra cash as opposed to paying down rentals.

I am currently in Hong Kong, and there is no way I can or will invest here as home prices compared to rent yields just don't make sense according to any of my calculations.

Do any of these locations make sense to you?