I'd underwrite the property, with that low interest rate assumable mortgage, to cash flow positively from day 1 as a long-term rental, but be willing and able to use the rent by the room strategy or to rent out part of the property as a Short Term Rental to dramatically increase cash flow during my occupancy. 

Cost of value add was $120k, so over $580k of increase above costs.  

Hi Ethan, I would not entertain the idea of getting more money from this tenant in order to potentially increase your cash flow. 

Only reason I've been doing it is to get 0% business credit card limit increases.  

Hopefully kept good records of improvements / anything to increase the basis2.

Based on that, do you anticipate increasing or decreasing your investments?

They have increased in value, and our rents have increased by more than 45% overall.

We signed P&S agreements on 6 different properties totaling 20 units approximately 8 months ago and received a call today that the price we thought we were buying at has to-be increased on average 13% due to the increased cost of construction.

The neighborhood has seen a lot of revitalization in recent years, with an increasing demand for both residential and rental properties.

So spending 200k on an ADU will likely not increase your property value by 200k.