Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

Then you put another portion of your mortgage on the HELOC and repeat the process. 

Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc.

Neither do I, thats why i was asking the process :) Any education you have on Sub To?

. :)We definitely want to invest in true vacation rentals as well but this will be a good learning process with not as much risk to start.  

For example, with our private investors, we always ensure that deals are secured by real assets and provide full transparency throughout the process.

Evaluate the situation to see if you could have done anything differently to mitigate the loss and implement changes to your processes, but know that this happens and hoepfully just not too close together. 

The seller is out of state and even visited the project a few times to check on the progress which I think helped him feel good about the whole deal as well. technology made the whole process a lot easier in the interim.

Now it sounds like they have gone into ICU and we have to wait to hear from their estate attorney to find out who can sign, POA, or what the process is going to be going forward. 

Im doing it more for the love of learning the process and to make a side income.