Partner Driven financed the S Vernon Rd deal using its own capital, covering the $116,000 purchase price and $19,500 in renovation costs.

Rents stagnated or dropped in most areas, and this is on top of all the rising costs, especially insurance and interest rates.

In general ADUs add less value than their cost.  

Partner Driven financed the Rue Montaigne deal using its own capital, covering the $195,000 purchase price and $30,000 in renovation costs.

After the construction is over there will be no loan, just cash flow, which would results appx. in 10% after all other costs deducted.

@Dennis O'Loughlinwhen you BRRRR, typically the improvements you make will go into the cost basis of the property. 

Insurance company now refuses to share their part of the cost.

Hello, Albert Lubin, the 50% rule is a general guideline used by real estate investors to estimate the operating expenses (OpEx) of a property as a percentage of Effective Gross Income (EGI).

For example if you paid $360,000 for a property with estimated land value of $60,00 then the structure value is $300,000.

I self financed it until I had to take on some loans due to delays and cost overruns (ever heard of such a thing???).