Numbers- Purchase price: $130,000- Downpayment: $20,000- Mortgage left: $108,000 7-1 variable ARM @ 7.5%- Projectes monthly rent: $1300-1400- Projected monthly profit: $0-100 - Assuming 7.5% small/large monthly cap, 10% property manager, 1 month vacancy, taxes, mortgage insuranceAny words of wisdom/guidance would be greatly appreciated 🙏🏻

Fixed rates are more comforting but seems like most HELOCs are variable.

-Days on Market (DOM) for single-family homes went from 35 to 48 days;-Total property sales fell 30.2 percent with 7,171 units sold;-Total dollar volume declined 28.2 percent to $2.7 billion;-The single-family average price rose 5.8 percent to $403,589; -The single-family median price increased 7.0 percent to $332,000;-Single-family home months of inventory registered a 2.9-months supply, up from 1.9 months a year earlier.

I'm not a huge fan of HELOCs with variable interest rates

If county, you can find the ADU regulations here: https://www.sandiegocounty.gov...Once you know what zoning applies to your house, you can determine the max size of your ADU and required setbacks.In regards to prefab, I know they are affected quite a bit by supply chain issues.

This is what I've done for the last 2 years due to lack of supply and SKY HIGH prices in my market.

We also have a very active Facebook group for people to ask questions and post deals in between meetings.Due to market inventory being in short supply right now, competition for deals is high.

He has a horse training business so we have variable owner distribution amounts  (anywhere between $50k-$200K annually) on top of our two salaries (total $8,000 monthly) and our monthly rental income (net after expenses approximately $4,600/monthly)... but I don't want this deal to just ZAP all our cashflow.I'm trying to look at it from more directions than just "paying it off" this since it seems like we will have a better shot at retaining it for a few years then selling as Dallas gets closer.  

No supplying linens, etc either.  

The variable expenses are estimates of future costs.