Expense Deductions: Deduct direct expenses like materials, labor, and selling costs.4.

With 3.5% down and 4% interest on renovation costs, it made sense to do substantially larger renovations than we would have had we come 100% out of pocket.  

Where I mention the 3-5% delta on a second is that is what it will cost you from a traditional bank (for example a HELOC or 2nd mortgage).

The sub meter costs and monthly reporting fees can be charged to the JADU. 

Whe shopping around you are going to see that some charge more interest but less closing costs and other less interest and more closing costs.

Population Growth: 49% Population Growth over the past 20 years, Sacramento has experienced a tremendous growth in population with individuals and investors alike coming in from the Bay Area seeking more affordable costs of living and lower barriers of entry into real estate. 

This raises the cost of using an STR versus using a hotel. 

I ask cause an architect costs money and Im not rich.

Think of it this way - the 6.00% cap rate is your cost of equity.

This includes having a clear understanding of holding costs, financing options, and potential rental income once the property is ready.Your current realtor’s local expertise will be invaluable as you navigate these challenges.