I have no experience personally with section 8, but I've spoken with several other landlords who rent properties in rough areas where the section 8 rental represents a significant premium to what a free market price would be.

For the ADU, I'd check with your Realtor and see what the value you would be with doing the work you mentioned (and see what he/she thinks about any other work that needs to be done in the house prior to selling to maximize your sales price).

Purchase price: $425,000 Cash invested: $23,000 Sale price: $510,000 My first lipstick flip that just needed updating from my REO lender.

looking forward to everyones response?

If the DADU or ADU pricing is off and its costs $350k to build it (and is that number correct) thats the real question.

If your basis is $100,000 and your sales price is $250,000 then $150,000 / $250,000(60%) of each principal payment will be considered gain.

Looking forward to learning from you all and connecting. 

Smaller developments (2-10 homes at a time) and lower price point (under $500k).

(i.e. have RE prices increased in the area, is there room for additional appreciation, how is the STR and LT rental market, any new housing or commercial developments?

Purchase price: $137,999 Cash invested: $15,000 Sale price: $260,000 Rental House purchased in 2006 and was my primary residence until 2019.