My assumptions based off research is I will be able to deduct 1/2 of all allowable expenses based off the ADU square footage (My understanding of that list below)  1/2 Mortgage Interest (Not principle) 1/2 Utilities 1/2 Property Taxes 1/2 Insurance (assuming I don't have separate ADU insurance)  1/2 general house maintenance (depending on the issue and if it's related to the ADU)  1/2 Depreciation (Home value, not land divided by 27.5)  KEY QUESTION: If my mortgage (PITI) is $5400, and all of those ADU deductions equal $3800 monthly, and my ADU income is $1800 monthly, am I allowed to pay the difference in "deductions" from my real estate business income? 

I work for an STR-only real estate agency, and we have agents in 20 STR-friendly markets who know this field inside-out. 

We include real expenses accustomed to STRs so you can see the actual operating costs.

I am currently dealing with headache after headache with the single-family lender who cannot even articulate the reasons why they are enacting their flawed policies meanwhile it’s smooth sailing with the lender for the larger parcel directly next door where the loan is 20x the size.

If I NEED to sell within five years, this calculation provides insight into the real-world return that incorporates these vital aspects of the investment.I want a balance between steady cash flow and long-term appreciation potential. 

Oh no it is VERY real.

Almost every problem you can think of happened.....So there I was, a seasoned real estate amateur. 

In my experience trying to raise capital from people within the real estate community doesn't seem to be the best method because most people in real estate are more interested in building their own businesses, rather than investing in someone elses (especially when considering how much money it takes to invest in syndications).

Hi Joseph,Shelby, NC presents some interesting opportunities for real estate investment, but it also has some potential challenges to consider. 

Quote from @Jackson Ebersole: Hi Piper,It's always smart to flip properties in-state, and I'd like to share some updated insights on why this approach is beneficial, especially in the New Jersey area.Lenders typically feel more comfortable with in-state flips because:You can manage the rehab more easilyYou have better knowledge of local real estate trends and valuesYou can respond quickly to issues or make decisions fasterThere's a lower risk of fraud or being taken advantage of by distant partnersI can help you with recommendations for the New Jersey market:North Bergen: Continues to show strong potential, with average profits now around $150,000 per flip and a gross ROI of 85%.Willingboro: While specific flip numbers aren't available, the market remains active with a gross ROI now averaging around 130%.Gloucester City: Still a top performer, with gross ROI hovering around 180-190%, though still on smaller profit margins.Irvington: Home values have continued to rise, with a 20% increase over the past two years.East Orange: Has seen steady growth, with home values up by about 16% since 2022.Paterson: Experienced a 14% increase in home values over the last two years.Additionally, Jersey City and Newark have emerged as promising markets for flips, with strong appreciation rates and growing demand.