On average, 80 people move into Columbus weekly.

Interest rates are higher making it a bit more difficult to profit on an already expensive build.3. 

We will have an expense account and capex account. 

Hello BiggerPockets Community,
I found a property that seems like it would cash flow positively ($1600) based on market rents. However, the existing tenants are paying about half of what current rates appear to be, a...

Cap rate = NOI / Purchase PriceTotally guessing here but assuming you and your wife can rent your current unit aka the main unit for $1,800, that would make your total gross monthly income = $4,433 $4,433 x 12 = $53,196 Annual IncomeLets assume 30% annual operating expenses for taxes, maintenance, cap ex, property management, vacancy...$53,196 - 30% = $37,237.20 NOINow lets say you'd do this work to add the ADUs if you can get your property's value up to $800,000, that would mean your property is operating at roughly a 4.65% cap rate... is that good for your area?

Add up expenses from Day 1 of the build and see how long it would take to recoup that dollar amount with your projected NET profit - meaning after all expenses.... ie you charge $150 a night but after cleaning/supplies/ fees, you make a net $80.

In this case it's just a better option - plus you can write it off as a business expense too.

Which have been my original main focus, but those cities are getting expensive and when the price is within reason I’m finding a very high crime rate…will keep searching…

Perhaps on higher end homes it is different but it sounds like you are talking average Joe, blue collar, housing.

But before you start doing this, make sure you have enough financial reserves in case of unexpected expenses.