I was involved in a bunch of industries—from wellness and gyms to digital marketing and consumer products.

High rates are here for at least the medium-term (1-2 years), so deals will have to pencil in this current environment.You may also want to consider hard money for your lending, as they can often fund your construction with far fewer restrictions than a HomeStyle loan.

There are many reasons that adding a single ADU in southern CA is a less than ideal RE investment (i will post a list at the end) but the negative initial equity is a primary reason as the initial negative equity position consumes the initial cash flow and can take many years to recover.As for converting your home to a rental….

I won’t try to tell you what to do other than if there’s certain properties that just consume way more energy you might consider 1031ing them into slightly larger properties where you could get better economies of scale for your time and expenses.

So, while you might have fewer tenant issues you might make a lot less money overall!  

It was a small $$$ project but time consuming because that was something I DIY'd while living in the property. 

Are there additional steps you take when screening applicants, or do you take fewer steps?

Very time consuming of course.  

There was an article published in Sept 2024 that showed the average consumer would save over $10,000 by working with a broker vs a direct lender over the life of their loan.

We've averaged around 7% for mortgage rates for the past two years now…I think if we can see a settling somewhere in the 6% range, if not sub 6%, we will see nice consumer confidence not only for home values, but rent values as well.