Purchase price: $89,900 Cash invested: $78,000 Sale price: $242,000 Off-market lead found threw news articles for some trouble the owner was in and learned of his vacant house.

You can get into trouble if you split up water bills among tenants with no control over use.

I have read that things are pretty grey there:The right type of beach home or vacation cottage can produce great tax results when the average rental period is seven days or less.But it’s tricky because when the average rental period is seven days or less, the property is not a rental property as defined by the tax code.

I have a colleague in LA who flips SFR's in the $800k-1mill range (with ADU's and they have never came in under valueFHA loan guidlelines do not give detached ADU's value.Though ADUs produce income, lenders cannot use the income to assist with approval as they can rents for a duplex.

@Jeffrey Long the special assessments is a concern for sure, but if each is producing I will be prepared for it.

I know in Ohio we have to keep them in trust accounts and if you mess with that money you can get in trouble.

They want to see 2yrs of property rents reported on my taxes to include the rental income in my debt to income ratio.Additionally, the bank is taking ~3+ months to complete a closing and I keep having to produce this massive packet of paperwork to get the underwriting done. 

We can BRRRR the house, but the biggest problem is there will be absolutely minimum cash flow (like $50) after the refi, however, we would be able to move on to our next deal, still have this house producing some income, and still have some equity left in this house after the refi

Big banks may give you more trouble. 

@David DuCille I got in trouble from BP for putting my YouTube link in a response to a new investor because I had done a topic in what she was asking .