I'm assuming architect fees, GC fees, Real Estate commissions, and of course interest on your loan ... but just curious as we haven't really dealt with any of those additional costs for our builds. 3) What market are you in and how is the market doing overall?

In addition to having cashflow to add value and push equity, I still have had decent appreciation.

Many insurance companies do not allow adding a landlord as additional insured.  

Hey Tim, If you are not using Hospitable yet that would be my first addition.

If you used a loan to rehab your property and find yourself in a difficult position, doing a straight refi (just paying off the old mortgage) will be easier than trying to pay off the original loan and take additional cash out.

Feel free to share updates or ask additional questions.

To give you an idea of how we approach it, we assume the worst-case scenario right from the start is 9-12 months of no rent, $5,000 in legal fees, and an additional $5,000 in expenses to deal with moving their stuff, putting it in storage, and dealing with health code violations or NOV's from the city during the process. 

I've opened two additional LLC's with them since I last posted here.

This initial negative equity position consumes the initial cash flow.  2) the addition of the adu makes the property multi family and likely makes rent control apply.  

With some additions, this would qualify for the OMG category, but I think they didn't have that category back then when it was on the market.