In some markets you can afford to increase more and in some less.I raised my tenants rent by $15/m and they were ecstatic. 

@Priscilla C. how much can you afford to put down without tapping the equity in your current home?

This plays into the affordability issues for tenants by allowing them to live in nicer neighborhoods for less money, yet I get monthly revenue comparable to short-term rentals.

We're still seeing 1% deals here with positive cash flow at very affordable price points ($120k-$180k).

I maintain even break even on valuation (which is rare in SF Zoned areas), the ADU has big disadvantages versus new property acquisition including financing, level of effort, rent control, prop tax being based on cost rather than value added, length of time including length of time from first expenditures to first income, reduction of something from existing unit (in your case existing home lost its garage).Did you see starting next year Mf can add an ADU per unit up to 8 units without any affordable housing concessions?

Studies typically cost $3,000–$5,000 but affordable DIY options (around $400–$500) exist for simpler properties.

They were not terrible, some people would call them C minus, and it wasn't even that much about financial considerations at the time (appreciation was not a thing back then in Milwaukee) but just not what I wanted to own or manage, so I sold them to them tenants - after quite a bit of financial coaching to get them to qualify for a loan.My standard advice is always to buy the best quality property you can afford.

You have to be honest with yourself, understand the risks and assess if you can afford the negative cash flow.

Especially in a market like Charleston where affordability has become a huge pain point in recent years.

And oftentimes, the projects lack enough margins to afford the "best" contractors.Consider the common claim on BP: you cannot find contractors that are good, affordable, and timely.