If you've never flipped a home before, that is a huge risk for your mom to take. 

@Rehaan KhanPlenty of very good real estate attorneys out there and especially good ones who will tell you you all the risk involved - which is why many shy away from many of the “creative” financing deals going on right now which are just unqualified buyers finding ways to buy a home and those attorneys do not want to be part of the lawsuits later on.

But I also know the market here is very competitive, and the medium home value is very high.

I plan to access some of the equity in my home, along with cash on hand, to purchase and reno property.  

Excellent managers may already be working for someone with several homes, or may be running their own homes and do not need the extra income.

. - Single family homes to rehab and hold or to fix & flip- Loan is in your name not your LLC- Rates between 5% and 6% depending on credit score- 30 year term loan, fixed rate, no pre payment penalty if sold or paid off anytime- Example buy at 100,000 and add 50,000 for rehab = 150,000 means 15% down payment or 22,500- So the buy is financed at 85% and so is the rehab if you look at it that way- House will be appraised off a contractors write up of the work to be done and must appraise out ARV to at least the 150,000 to make sense at all; if not loan is not approved so a buyer cannot get into trouble in that sense with lender oversight- all work must be done by licensed trades people, not the own themselvesIf this sounds plausible I'm happy to answer questions.

It is the last buildable lot in the middle of 1.4 million dollar homes. 

Each option has its pros and cons, and I'm hoping to get some insights from this community to make a more informed decision.Option 1: Building an ADUPros:Increased Property Value: An ADU can significantly increase the value of my primary residence.Control and Proximity: I can closely manage and maintain the property since it's on my land.Potential for Higher Rent: ADUs in bay area can fetch a good rental price.Flexible Use: ADUs can serve multiple purposes – home office, guest house, or rental unit.No Additional Land Purchase: Utilizing existing property means no extra cost for land acquisition.Foundation improvements: I will get an upgrade for my foundation which increase house stability.

@Rebecca Ramos - Just wanted to add a buyer does not have to be scared to buy a home and want to move in 12 months.

Investment Info:Mobile home other investment.