If your construction costs are wrong, you're in trouble....Attach a price to each of the following:General ConditionsSite PrepGrading/ExcavationConcrete/FoundationFramingElectricalPlumbingHVACWindows and DoorsWrap/Vapor Barrier/WaterproofingInsulation/FenestrationRoofingSidingDrywallCabinetsCountertopsTile/Stone/MasonryFlooringPaint/StainFinish/Trim CarpentryRailingsGlass/MirrorsOther

Tom's methods and program is great, we subscribe to many of the same techniques but we do not attach to the Wealthability brand. 

We take it a step further and even attach the owners email and cell phone number.

Should I follow this rule when investing in real estate.Recently bought a 550k house with an attached ADU unit thats projected to bring in atleast $1500 monthly income if it has a renter.

Though it might “seem” that you can arbitrarily attach the “tax basis as the fair market value” and thus receive $0 gain, the IRS would not respect this if you were selected for audit.

Also take a look at the tax record https://parcelviewer.geodecisions.com/Chesapeake/Account/Log... see what other kind of structure are attached to the building.  

Perform the same task in each app to ensure a fair comparison.Load a property with pictures and details.Market that property.See what your marketing looks like from the public's perspective.Submit a fake application to see how easy the process is.Run a credit/screening report on yourself.Enter a maintenance request, assign a vendor, and attach a fake invoice.Enter charges to the tenant's ledger.Enter recurring charges and automatic late fees.Sign documents electronically.Run owner reports.After testing a few apps, one should clearly stand out.

In that case, it may make more sense to convert existing components of a home (attached/detached garage) into additional rentable space rather than building an additional structure.

It comes back to the old Brandon Turner saying from his time on the BP Podcast, if I found you a $1,000,000 property and could sell it to you for $500,000 with no strings attached, you would figure out the financing! 

KBKG also offers FREE audit support and FREE use of their 481(a) depreciation software which produces the attachment schedules that are needed to file the IRS Form 3115.