In addition, ADUs often add less value than they cost.

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Most of the investors I work with are pulling every bit of capital they can out of their current portfolio and purchasing additional properties. $800k can go a very very long way, depending on what you want to do with it and what market you are working in.

And any short sale offer will have to be close to market value.Years ago, after the great settlement agreement with the big 5 banks, those banks were making mass offers of discounted pay offs on seconds.

The interest payments will be additional deductions/expenses. 

just some things to think about.in addition to the BP family of podcasts, the rental income podcast with Dan Lane is a great podcast and he interviews a lot of medium size landlords who aren't flashy but really know what they're doing.

In a nutshell, I buy secured debt ( real estate note secured by a mortgage or trust deed)at a discount from a lender.

In addition to furnishings, t will need work (such as new countertops) to meet my vision for upscale couples retreat.

Oh, and if you're living in the duplex yourself there are additional considerations like 121 exclusion and home-office expenses and depreciation. 

Many lenders will charge additional rate increase if loan is under $150K.