Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

There are some accumulated passive losses but not much.

So in 3 years if you bought a $150,000 house, you would likely have accumulated $12,000 -$20,000 in equity on your $30,000 initial investment - not to mention your tenant paying down your mortgage, plus some really awesome tax advantages (3.3% depreciation, etc.), plus hopefully some cash flow!  

Yes, 401(k) plans, IRAs, SEP-IRAs and all other kinds of retirement plans are still the backbone of your wealth accumulation, especially if they are self-directed.

I acknowledged his concerns but was unable to resolve the issue.Since the tenant moved in, I have experienced escalating issues with his behavior, including:Lease Violations:Moving items without permission (furniture, safe, carpet cleaner, TV from his room to another tenant's room).Accumulating boxes in the garage, potentially exceeding the agreed-upon storage space.Installing a security camera in the common living area, which is a direct violation of the lease agreement.Failure to submit a work order for alleged issues with the smart lock, as required by the lease agreement.Behavioral Issues:Aggressive and confrontational communication.Unfounded accusations and personal attacks.Refusal to communicate through agreed-upon channels.Loud and disruptive late-night behavior (banging on the door, kicking the door) due to alleged difficulties with the smart lock, often accompanied by profanity.Harassment of my son, the designated on-site property manager, by making disparaging remarks about me and refusing to cooperate with him.Potential for Neighborhood Disruption: The tenant's late-night outbursts have the potential to disturb neighbors, although no formal complaints have been received.Unreasonable Demands: The tenant unreasonably demands advance notice of my access to the property for storage purposes, despite the prior agreement and my right to access common areas and my own storage spaces.Safety Concerns:While the tenant has not directly threatened us, his actions, including the harassment of my son, have created a concerning and unsafe environment for my son and me.Goal:My ultimate goal at this point is to evict the tenant due to his ongoing lease violations, concerning behavior, the harassment of my son, and the potential for neighborhood disruption.Questions:1. 

It's just hard to prove that the tenant caused the issue, since as time passes the drain tends to accumulates as well.

I wish I hadn’t because I didn’t understand the necessary “accumulation phase” of REI and wealth building.

.: Hi All,Is there any way to structure a private lending arrangement so that income is considered passive (by IRS standards) and can offset accumulated schedule E losses?

I've been watching Chad Carson's videos and his approach of accumulating more properties than you need, then start using that income to pay off mortgages and cull the lower performing properties makes sense to me. 

I'm a struggling startup owner that has accumulated 300k in credit card debt at an average APR of 21%.