You can't only evaluate the ROI across the board because if you don't choose a good property, understand the metrics, and have good cleaners and management support, you will lose quickly in Airbnb.

I suggest focusing on the area you want to grow in or that best supports your long term goal.

Happy ThursdayAs a lender one of the biggest hiccups in the flow of funding a loan and financing the rehab is the Rehab Budget and Supporting Documents.Growing up, I remember my Dad writing all of his renovations on the back of an old receipt with a thick, rectangular pencil... although not the prettiest rehab plan, it worked for him!

My personal default is that equity should follow the money but as it seems your venture will be 100% debt-financed, a 50/50 responsibility for liabilities should support a 50/50 split of profits under the circumstances you describe.      

Due to general unresponsiveness of the HOA we did not seek any permissions.However, soon we received a letter from the HOA attorney with request to remove the privacy walls and the foundation support bars with fines for every day not complying.

Hard money, though expensive, can support the purchase and rehab. 

It's also so awesome to see the support for the newbies here.

Since we don't have much money saved but a healthy income, we plan to get a 2nd mortgage to fund the ADU conversion based on property future value.

I did not move forward with the deal and received a healthy lesson in rent control and cash for keys in East Orange NJ in the process!

BP members, thank you for all your wisdom and willingness to share!  Two weeks ago, we closed on a SFR (long-distance). Today, a great family moved in! Hybrid investment. Looking at the next ones via traditional &...