Here's an example comparing three different loan originations:Loan A: No interest reserve, but $15K est. interest payments for duration of the loan.

I should have added that a middle ground between entering data yourself into software, managing the loan on your own, and hands-off investing in a fund is to use a note servicer.A note servicer will manage ACH payments, track property taxes and property insurance, manage late fees, provide invoices and reports, and much else.

Hey Anthony, in that case I would probably invest out of state and find a partner in that state to be the boots on the ground.

I'm not saying you're doing this, but people will often make the mistake of looking into the highest priced rental unit and making that the "market rate" but it's often not a true comparable to the subject.

“ cash flow returns” almost always compare horribly to a simple bank CD after you deduct for insurance, prop taxes< vacancy, capex, prop management (or your personal time.) etc etc etc. 

Would you be able to evict if they don't pay the ground lease? 

I've seen this in the news.This doesn't affect me because I'm small time compared to these big companies.I also don't purchase any pricing software.

If you manage to get this off the ground and do some verified - meaning paperwork is in your name, or company's name, etc - projects that turn a profit, and you build some capital in a bank, you should be able to go right to that lender after a year or two and start a relationship no problem.  

I can't see but maybe the wooden piers are sitting on sonotube concrete piers embedded in the ground which might change things.What I would do is get with a few major local lenders and maybe ask them what they would need to make sure the little studios (that is what I would call them, not yurts) are maximized for value.

I know this post is a little old and not sure if you went through with your ADU construction yet, but my partner does ADU ground up construction in the LA area.