@Tyler Kesling - I would highly suggest reading Multifamily Millionaire Vol 1 & II by Brandon Turner and Brian Murray. 

After the upgrades, we successfully sold it for $212,000 on 8/8/2024, showcasing our ability to turn properties into high-value investments and deliver outstanding returns.

I would HIGHLY recommend getting a book keeper who is a REI or is an expert in REI.

My total debt to value on my primary is still less than 30%. 

Wherever you invest, I recommend hiring a property manager who is highly knowledgeable about Section 8 and its frequently changing guidelines.Putting down at least 20% ensures the best rates and avoids any PMI payments.Good luck!

In fact, I didn't play in high school.

Or maybe a high-income earner looking for a place to put their cash to work?

Thank you all for your time and value add.

They can provide a more accurate assessment and potential repair costs.When dealing with homes from the early 1900s, it's prudent to overestimate your renovation budget to account for unexpected issues.

My assumptions based off research is I will be able to deduct 1/2 of all allowable expenses based off the ADU square footage (My understanding of that list below)  1/2 Mortgage Interest (Not principle) 1/2 Utilities 1/2 Property Taxes 1/2 Insurance (assuming I don't have separate ADU insurance)  1/2 general house maintenance (depending on the issue and if it's related to the ADU)  1/2 Depreciation (Home value, not land divided by 27.5)  KEY QUESTION: If my mortgage (PITI) is $5400, and all of those ADU deductions equal $3800 monthly, and my ADU income is $1800 monthly, am I allowed to pay the difference in "deductions" from my real estate business income?