Special place!

You are considering putting a tiny home on your existing property as an ADU or using that money to save up and buy the next investment property and wondering which would be the wiser choice.I think ADUs can help provide additional, much needed, housing.

My suggestion would be to cap your utilities at a certain amount and have Tenants pay anything over that amount.That will help you manage your expenses, and also allow Tenants to gage their usage each month, and make adjustments if they don't want to go over the allotted amount.As far as collection, provide the bill showing any overages and just have them pay for it along with their rent. 

Can you provide guidance on how to get started and some effective strategies?

Could the seller provide you with a note for the down payment and you pay him back?

Hello Andrew,I’d recommend starting by finding an agent who specializes in rental properties.

This 'consultative' approach means their business clients come in talk through problems and they try to provide a bit of outside business 'coaching' if you will, or connect you with another client who can assist.

However, you can file Form 8832 (Entity Classification Election) to change the LLC’s status to a disregarded entity, provided you act promptly.If you don’t make the election, you’ll need to file Form 1065 by March 15, 2025, adding complexity but retaining the same tax benefits, such as deductions for depreciation and repairs.

I don't want to waste anyone's time providing quote after quote for me for the properties I am merely in the analysis stage with.

Also consider networking with investors active in those areas who can provide insight on what’s working.