I have been telling my sons to utilize that!

Monthly Expenses: I’m accounting for rent, utilities, and cleaning supplies, but are there other hidden costs I should consider?

You can utilize hard money for a BRRR or flip to get into the game. 

The thinking on this is that although the buyer utilizes what appears to be a purchase contract, it is actually being used as a purchase OPTION, and as such an option contract which clarifies that the purchaser is actually obtaining an option to buy should be used.   

If the property is sub-metered/ if you intend to have the tenants pay utilities make sure to mention that to them. 

Are you utilizing REPS?

It now cash flows beautifully, which I continue to utilize for other my other properties. 

If we made a mistake it was not utilizing our mentor even more.Deal analysis is something like this:Deal 1  sold this week at auction for a loss, probably a $4,500 loss, this is in my profit calculation.Deal 2 Bought for 20k sold for 45 with 10k down and 35k financed for 8 years at 8%  I counted this as a 45k asset but probably should have only counted it as 35 since the 10k has been reinvested and is reflected in other assets.Deal 3, bought for 10k and foreclosed on a non performing borrower, we will be all in for under 20k, and should sell for @ 45k, maybe more if we do owner financing.  

They need to do all their due diligence including understanding the value that will be added by the ADU, the finance options available, the consequences of adding the ADU (rent control, property taxes, rental limitations, etc), etc.Good luck As with all things, it depends on the investor and the equity.If they are able to leverage existing equity to buy it under a HEL or HELOC, then they are adding equity with no out of pocket expenses, and adding immediate and longterm cashflow to existing stock.We like ADU's because there isn't more land being created in our city that is landlocked...but there is more density available to those with large lot under-utilized sfh.In my market, it typically costs $2 to add less than $1 of value on single build ADUs.  

We want to travel and invest and are considering converting this short term rental to a long term rental to avoid sales tax, paying utilities and general management of the property.