Take your yearly net income (rents - applicable expenses) from this ADU and divide by the appropriate cap rate.

Co-living works well in Colorado because there is no cap on the amount of nonrelated people that can live together as Denver and COS are wanting more density with in the major cities. 

We have tenants add .5x for a pet deposit in lieu of a $500 pet deposit (2.5x or 3.5x respectively) however there are some new pet fee and pet deposit laws coming in Colorado January 1, 2024 and we aren't yet sure how these caps on pet deposits will impact our use of Rhino for this purpose (see below re: legal definition of "Security Deposit").What questions do you have?

I would be much more apt to invest in this type of deal, if you are truly a second, recorded lien position with a fixed interest rate and a capped upside upon any capital event.And finally, there is all the basic underwriting needs which will vary deal by deal.  

It would be good to understand what other think is a good net operating profit, cap rate, and ROI in today's world which I'm sure can vary by market. 

Bought for 359k will sell for 659k in this example.Assuming 150k down payment in 2024 50k annual payments for a year for 4 years 259k ballon payment I thought 50% of each payment would be cap gains but then I read unstated interest payments and I’m lost.What portion of his annual installment payments will be interest?

Was looking for a new build buy and hold for 3-5 years with no to little CAP-X.

Things like 8% cap rates, and 10-15% cash on cash returns. 

Cap Rate = NOI / Purchase Price (or Market Value). 2.

He was sold on an promised "8 CAP" - and not on comps.