Purchase price: $172,000 Cash invested: $43,000 We purchased this rehabbed home and added a privacy fence, removed overhanging trees, finished the countertops, built a firepit, security system, camera's, fixed the sidewalk and turned it into an airbnb.

The property was in a great market but needed a full cosmetic rehab and basement finish to add a bedroom and increase resale value.

We should be finishing renovations on my unit in the next month and then will be moving to a live-in flip so we can get this one rented. 

The had scratches and even bits of old paint still on them after I finished.

I think initially it makes sense to find properties that already have finished basements, in-law suites, etc. as converting those spaces to ADUs will be inexpensive and create a significant amount of rental income ($2,000/month+ in most areas close to the city).

A great agent will help walk you through the process from start to finish and the home inspector is there to protect you in regards to the condition of the home.

Bonus points if you can convert an office space or finish a basement.

Also, I found 2 ideologies regarding such development projects: Use one GC for the entire development or use that GC only for crucial trades such as foundation, framing, roofing , external siding, etc. and use sub contractors for finish and interior work to reduce cost.

My husband is a licensed general contractor with experience in building semi-custom homes, finish carpentry, kitchen & bath design, cabinet installation, and much more.

And since I finished school 50+ years ago, mine may have lost relevance.But, my experience differs.