After my first refi ever, on my first duplex, I knew what they will appraise for and as such I knew so long I was all in under 175k I was good , anything under was a bonus, and I , except for 2 of my duplex's ever was over 100k for rehab and acquisition

If it's a high-end wealthy neighborhood (think Los Altos, Menlo Park, Palo Alto) where all the main houses are giant, maybe the potential buyers would just think of an ADU as a bonus, but not as something they want to pay a lot of $$ for, since they are most likely not going to use the ADU as a rental, but more like a guest house or an office.However, if it's in a neighborhood where most buyers are younger folks who have young kids and elderly parents (think Santa Clara, San Jose, Fremont, etc.), then ADU is very appropriate as child care and caring for elderly parents are big & real needs among this demographic.

To be conservative, I use 50% occupancy and anything over is a bonus.  

., bonus depreciation, etc.)I've found that the intangibles are more powerful than the returns.

If Albany does realize success with its Albany 2030 plan, there certainly could be a gap-up type of appreciation but that is a speculative risk and would just be an added bonus to a buy and hold strategy.

Just yesterday I watched a live stream on BP discussing tax strategies for Real estate investors, and I am not sure if someone has mentioned this already in this thread but there is a new tax break called Bonus depreciation which allows you to claim the full amount of the roof being replaced in one go , not having to depreciate it as we normally would over 27 years.

Plus, an added bonus is that it a capital expenditure that you can write off at the end of the year!

Also, Some attorneys in the area would be an added bonus!

I talked to a CPA firm and they told me that if I have a S elected LLC to manage the Airbnb (even hiring another property manager through the LLC), the income of the rentals of Airbnb can be considered as income through business and the deprecations of the property (such as bonus deprecation) itself which brings losses to the business can be used to offset the W2 income.

@Colin Merrill hourly and for some projects we do a bonus - i.e.had to collect water bills