Do an assessment of value now and after you get the ADU permitted * We have been in situations where $8k for permits could mean an extra $100k in value or $2k per month in rents. 

I'm considering converting the shed into a DADU to maximize the use of the space and earn some extra income. 

According to the pictures it looks like extra trashy place.

If a real estate “guru” ever tells the truth it’s only by accident  

There was also extra bracing to keep the roof from moving further apart.  

I do not recall them ever discussing how you cover the cost of property repairs and capital expenditures if you are not concerned about the property making extra money each month.Kyle some investors are in a different place than others.

(Give that to sellers, they picket $100k after paying off the loan.) and then pay them 4.5% interest (what they could get from the bank.) now you’re talking $750/yr extra interest, and it’s being paid to family. 

Truthfully if you want 100% passive, investing as an LP in syndications/funds may be a better option.

Other asset classes aren't so the depreciation schedule may not be as quick/beneficial.2) And it is even possible to find deals that are what I call "super-shielders" and which not only shield all the distributions in the investment but have extra to use over on other real estate investments that are throwing off income. 3) Unless you're doing a 1031 exchange  at the end or similar tax structure to defer taxes, you will have to *pay back* all that depreciation benefit at the end (on sale...which for you is in 5 years)  via depreciation recapture.

Many investors aim to jump straight into turnkey properties or multifamily deals to scale quickly, but the truth is that most people don’t have enough liquid capital to maintain consistent growth this way.