Here’s what I’ve learned so far: Investors want deals with solid profit potential—so they’re always looking at the numbers: a good ARV, reasonable rehab costs, and enough room to make a return.

The wife and I are in the middle of building an 800sqft detached 2BR 1 bath ADU in our backyard near St.Augustine in downtown Raleigh and was curious what you find they return in equity.

Someone trying to earn 4-5% return they could get from a bank cd?

Include text so that states what will happen if the new lease isn't signed by landlord and husband such as the return of keys by all parties date.

But if this equity is really all you have for retirement do you want to give it for the sake of potential returns? 

Sometimes an $800k 4-unit could be a better return than a $300k 2-unit...or visa versa. 

In 2023, we sold it for $245,000, achieving a strong return and leveraging the experience to fuel future projects.

Different buyer pools homeowner vs investors and the returns are definitely in the 4 units or in value adding the 2s. 

Rental income and expenses, such as mortgage interest, property taxes, repairs, and depreciation, can be reported on Schedule E of your personal tax return, regardless of ownership structure. 

This allows new investors to gain experience while minimizing risk and maximizing returns right from the start.