although they both are interdependent.The best way to understand costs is to get a Floor plan drawn and get quotes from at least 3 people in the area who have done ADU'sIt's always a good idea to involves a professional right from the start, especially someone who is experienced as they will suggest techniques that could bring value and save money in the long run.

But most of the people who were being foreclosed on were home owners not investors.So to protect yourself, make sure that you can cover payments when vacancy goes up and make sure you are cash flowing enough to cover expenses still if the rental prices dip a little and save some of the cash flow for an emergency fund - maybe 5k per unit. 

update.my 3 unit cash out was cancelled by quicken loans. i give them no stars.90 days and $500 later to tell me they dont accept reserve money in dba account. i needed 2 months in personal savings. this after 10 other stupid red tape bait switch tactics. and 3 different loan officers all with varying degrees of knowledge.

I have enough money saved up right now and good credit to be able to start something, I just want to making sure I start in the right direction.  

No closing costs, generally just an appraisal and other small fees but can save you thousands.  

If you have enough personal saving or cash flow, you do not have to leave reserve in there.From tax / legal perspective, there is no pericing when you take that money out. 

As you do more flips, you will want to elect your LLC to be taxed as S-corp to save on SE tax of almost 15% on your profit. 

Saved me a trip.

It would save families from trying to navigate San Antonio and make it to the events on time; It would allow them to spend more precious time with their graduate-because time with their sons and daughters and siblings and spouses is very limited on that weekend; and it would provide a year-round opportunity for you to keep the unit filled and cash flow.

I've not yet done the math to determine which strategy would save me more money, but the big cons of this areNo primary residence, therefore slightly higher interest rates, 20 - 25% down (but depending on the market, this may very well be equivalent to 3.5 - 5% down in LA).Depends on the quality of tenant screening, but it's probably safer to assume that they won't take as great care of the property as I would.Probably need a property manager, professional or tenant.Either strategy seems to net me the same cost around $1,500 monthly, but I'm biased towards Los Angeles as I can rent to friends which solves a lot of the tenant/landlord issues.I'm not looking for anyone to give me all the answers but would appreciate any insight, food for thought, and constructive criticism.