A Stanford study revealed that over 75% of the ADUs built in San Jose between 2016 and 2020 did not have a permit and are therefore illegal housing units.The lengthy permitting process, high construction costs, and shortage of tradespeople are some of the factors motivating property owners and contractors to take on the risk of building, renting to tenants, and/or housing family & friends in an illegal unit.

So, my monthly payment on the underlying note is about $1,475 and I'm getting $2,400 for a cash flow of $925 a month.I apply the amount "down" to the agreed to option amount, if they exercise the option.

The cost to rehab was too high. 

I have a husband and 2 kids and I promised my son we wouldn't move again until he has graduated high school (3 years).

Account ClosedIts a good point about the yardsAlot of pro framers I know who do high volume use 84 Lumber and smaller regional type yards not the Menards etc.   

(My company has it’s general liability insurance, of course.)So, this is a temporary arrangement, at least for now.He will charge a fee to pull permits and to do periodic inspections to make sure my subcontractors are doing quality work but I will be project managing the entire job and handling all components of the renovation from design, floor plans, estimating, purchasing, hiring and overseeing the subcontractors, etc.The general contractor and I are regrouping next week to discuss what he would like to charge and I just want to get some feedback from you experts before we meet.

I don't really like that ROI as high yield savings accounts almost pay 5% these days, surely you could do better than 6.75%  

In this cas you own but it's fraud, orange jumpsuit not so flattering.For a "win win" in a distressed property the seller has to get a big sales price or high interest rate for taking the risk.

Makes me think more about it. 400k does seem high when you put it like that.

Check in with @Joseph Chiofalo they have high LTV Fix & Flip financing available nationwide and do a lot of lending in TN and the south in general.