ADU takes too long and expensive.

Allows you to tinker with occupancy, daily rates, various expenses, and loan assumptions.

In general, a house built say before the 1950's or 1960s a basement remodel is going to be a lot more expensive than a newer built home, but that is a big generality.

I've also built and seen others build a lot of equity in that time.Purchase: $80k-$130kRent: $1100-$1500 (no rent control in MI)1% rule: 1%-1.4% rule dealsROI: 10-14%Cash flow: $150-$300/door (after all expenses and budgeting for maint, capex, vacancy)Appreciation: 3-10%+ (has been double digit for a decade)Location: C+, B-These numbers are based on the "sweet spot" in Metro Detroit.

It is more expensive though, so I may look into yours too, thanks.

As an example, I'm personally looking for long term appreciation to generate wealth in the future, because I make money for my day to day expenses with my current job.

If you are looking to generate tax breaks, if the property is a more expensive one, you might do a cost segregation study and accelerate the depreciation deduction when you purchase it.

He keeps 1/3 of any amounts he collects, and passes through any expenses he incurs - such as service fees, filing costs, etc.

Focus on maximizing tax-deductible operating expenses associated with your rentals, such as repairs, property management fees, and mortgage interest.

Investors can make enough money from rental revenue to pay for their living expenses by buying a multi-unit property and renting out the other units.