So the total cost is $4800.I know I have to factor in the pandemic years with higher costs (although I think differences would be mostly in products and materials, not labor), and the fact that the numbers in the book are from 2019, but I was wondering if someone could help me see where I am making a 130+% mistake in my estimation of labor costs.Thank you in advance!

@Roberto VasquezThe decision to create one or more LLCs for your properties can depend on a few factors.

I just wrote a blog about the financial metrics/returns of building ADUs in Los Angeles & Southern California...thought I would share some of my findings:The cost of an ADU will depend on a few factors including whether it’s a garage conversion or newly built detached/attached ADU, but a good rule of thumb is as follows:Garage conversion (300-400sf): $70,000-$100,000New ADU: $200-$350 per square foot.

You'll get a far better response using your name, and in the case of no name or return, the curiosity factor will often overcome the gatekeeper mentality :-)Hope that helps.  

Defintely talk to a lender because there are a ton of factors that will play into the amount of next mortgage you can get- the biggest ones I dealt with were DTI ratio and the monthly payment I would have to make on that HELOC.

If a property has that kind of impact I would use that as a no-go factor right off the bat. 

Credit score, income:rent ratio, job longevity, Landlord references, age, and a long list of other factors I'm forgetting. 

At this point I’m dealing with the issues as they come and will take all necessary actions that I can to finish the project the right way but the lesson for me is I guess in the future look for the permits pulled for a house over the years and try to factor in potential work that was done without permits and add that as a risk factor.

Yes, there are instances where the eviction/forfeiture process is less expensive and faster, and theoretically there can be more upside, but on the whole, those factors do not make up for the negatives.

Where you're located will absolutely factor into whether you use multi-year leases, but we manage over 7,000 properties through the southeast and have collected over 97% of billed rents through covid.