Then see if that number pencils out for you for rental and a return on your investment that makes sense.On another note for the OG poster, here in CA, ADU's are much easier to do now that we have passed some great laws to cut through some red tape and prevent local jurisdictions from imposing rules to make your ADU impossible.

For example, all of our SFHs come with included lawn care. 10 years ago everyone wanted to cut their own grass and save on the rent.

I’m straight forward and get to the point.

In fact, I purchased a better deal two weeks ago straight from the MLS.

We refinanced at 75% LTV, and the bank cut us a check for roughly $140,000.

Do you have similar guidelines for a straight equity split if I wanted to avoid doing a preferred return?

You cut out the middle man and build relationships with folks who likely have more time than the general contractor.  

For example, I just did this with one of my tenants to cut their lease short midway through and paid them one month’s rent ($1850) to help cover moving costs and the premium on a new lease.

That's a good point to bring and it may well provide a loophole, I thought it was straight 5 years not 2 of 5. 

Just your sales price and cost basis.Good luck.This was my response to that:That's a good point to bring and it may well provide a loophole, I thought it was straight 5 years not 2 of 5.