Here’s a blog on investment analysis that I recently wrote if you’re interested. https://www.biggerpockets.com/blog/real-estate-investment-analysis-for-any-asset-classBeing a good developer requires you to be good at at least one of these things: money or equity network, construction knowledge, architectural design experience, project management skills, and a broad network.

Here are some reasons ADU additions in single family zoned areas are typically a poor RE investment:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

To give you some perspective on what those tax increases can look like here are some examples of the changes based on some of my properties that I own in the city:$4096 -> $5522 (+1426)$3850 -> $5516 (+1666)$3835 -> $6283 (+2448)These are only some examples, but all of the properties that I own have increased in its tax assessed value, therefore drastically increasing the taxes per year and decreasing annual cash flow.While tax assessments are normal it seems that this is a very drastic effort to recuperate losses.

Glad you're here on BiggerPockets. 

Now here is the thing.

Well... as we can see... predictions on this thread didn't age well ; )August 2, 2024 - Current 30yr Fixed - 7.532%Bought a house at 6.5% and mortgage broker swore rates were going to 5% by end of 2023... and here we are lol

So in your scenario, if the place you were selling was 1M, but the loan was at 700k, here, many local banks would do a 200k second leaving buyer to only need to cover the last 100k. 

It seems low per your description.  

Kishl,If you want to talk to a seasoned expert in Dallas and DFW reach out to @Lucia RushtonLucia is a member here on the BP forum and has helped tons of my bank customers find a great investment property. 

. - I am considering selling a few if not all (just 4) of my properties here in TX (I would hope to walk away with about $150k+). - I will be in school full time for 3 years along with clinicals in and around Nashville.