I think, generally speaking, this is one of the bigger reasons NOT to build an ADU in your backyard simply because you have the space: there aren't really any simple ways to finance the building costs. 

i.e 500k (400k building+100k land cost),  with cost segregation average 400k X 20% = 80kcan 80k deduction be applied as depreciation, against his w2 income from a salaried position? 

I am thinking about moving out to Sacramento, as I see some duplex’s around 500-700k range.I’m planning on house hacking my first property, which would be a multifamily, and build a portfolio of multi-families within the Sacramento area.

Furthermore, based on it's location alone, this property could be sold to a developer because of the unique zoning that has no limit to the building height built on the lot (!!!). 

Hello, building a home in 30a. 

Hey Bp Fam, Im looking into accepting the terms of this deal however, Im a little hesitant because  my initial request was to have at least 2 months of build out period without payment as the value I will be adding to the commercial  property will increase the properties value. 

Yes the leaseback will cover the loan and fees for the duration…if we don’t break even, we may have a tiny cash flow.the builder is using it as a model until they sell the remaining units they will build over the next couple years.

Plus, it helps me build a good relationship with the seller, which can be handy when it comes time to talk about the price.How I approach the property tour depends on a few things, like how the property is being sold and where it's located.

I am a general contractor with 20 years of experience building new homes and renovating existing homes.

Scope of Work:Initial Assessment: Our team conducts a thorough assessment of the property to evaluate its current condition, identify structural issues, and determine the scope of renovation required.Design Concept: Collaborating with architects and designers, we develop a design concept that blends contemporary elements with the historic character of the row house, maximizing space utilization and optimizing layout efficiency.Structural Repairs: Structural repairs and reinforcements are undertaken to ensure the integrity and stability of the building, addressing any foundation issues, roof leaks, or structural deficiencies.Interior Renovation: The interior of the row house is completely renovated, including the removal of non-load-bearing walls to create open-concept living spaces, installation of new flooring, upgrading electrical and plumbing systems, and installing energy-efficient fixtures and appliances.Kitchen and Bath Remodeling: The kitchen and bathrooms are transformed with modern finishes, custom cabinetry, quartz countertops, and high-end appliances, creating functional and stylish spaces for daily living and entertaining.Historic Preservation: Special care is taken to preserve and restore original architectural features such as exposed brick walls, decorative moldings, and hardwood floors, enhancing the property's historic charm and character.Exterior Enhancements: The exterior of the row house receives a facelift with fresh paint, repaired masonry, restored windows, and landscaping improvements, enhancing curb appeal and contributing to the overall aesthetic appeal of the neighborhood.Quality Assurance: Throughout the renovation process, our team adheres to strict quality control measures and standards, ensuring that workmanship meets or exceeds industry best practices and building codes.Finishing Touches: The finishing touches, including interior decor, lighting fixtures, and hardware, are carefully selected to complement the design aesthetic and create a cohesive and inviting atmosphere.Timeline and Budget:The single-family flip project in the Philadelphia row house is estimated to be completed within [timeline], with a budget of [budget].