However, ADUs larger than 750 sqft doesn't give you too much additional rent because people who can afford $3000/month would opt for smaller SFHs or luxury apartments with amenities.

But I could be wrong.4-5 cap doesn't mean much if someone is going to improve units and drastically increase rents or if they are going to redevelop the property to best and highest use into new luxury apartments, condos/townhomes or small lot homes etc.

Normally some operation like larger hotels and resorts control most the market with the sub market feeding off of the overflow or people looking for larger homes or deals on pricing.Intrawest Resorts Holdings, Inc is a public company, and it is a developer and operator of destination resorts and a luxury adventure travel company that operates all over the US.

It may however impact the high end luxury homes.

I have done 25+ transactions that are from a wide variety of advanced real estate techniques that include rehabbing, wholesaling, dividing and rezoning land, taken property subject to existing financing, purchased short sales with cash, purchased luxury short sales with advanced land trust techniques, purchased probate, and held long and short term rentals.

A bit over a year ago I graduated with my 4 year degree in Civil Engineering, and I got a job in Montana where I am doing Structural Engineering primarily for custom luxury homes.

If the rooms are a lower price point, thats a different kind of renter than the one that can afford and is going to choose a private luxury rental at a higher price point and with a lot of additional fees at RTC.Happy to help- I'm a Reston Realtor too.

I hope to eventually become a well known and sought after luxury home builder in Northern Illinois and I'm looking forward to insightful and intellectual discussions with fellow Real Estate connoisseurs here on BP.  

I got side tracked on my investing journey with a large luxury STR that I thought would bring great riches and yadda yadda. 

I think we’ll see a pull back on the SF and luxury condo market as rates increase but we’re betting big on MF rentals.