Let me know if you plan to make it so I can let the owner know and he can make sure they are properly prepared.

Cash Flow Management: If you take out additional debt, it's crucial to have a plan for managing your cash flow. 4.

Are you planning to more projects like this (or maybe BRRRRs) this year?

@Diana Teng there are a LOT of potential pitfalls:(So, it's vitaly important to not just find someone that you think you can trust because they tell you what you want to hear, but you find someone that their processes seem a good fit for what you want.EXAMPLE: we do BRRR Turnkeys for clients and take numerous vides we share with them - initial, worst state of any demo, when HVAC, plumbing, electrical update BEFORE walled in, before any major payouts and of course a final walk-thru video.One thing that's accurate from all the HGTV renovation/flip shows is that you should expect and plan for surprises!

Your account structure depends on your goals for growth and if you plan to self-manage or hire a PM.

How do you plan to finance the ADU?

I don't think they verified that the tenant was planning on leaving either.

Red flags for me include people who are overly optimistic without considering risks or those who don’t seem to have a clear plan for their contributions to the partnership.

One other thing that people in their 60s can consider is - if you are planning on taking Social Security and making passive income part of what you live on, rental income may not count as income against your Social Security benefits.

do you plan to live in that property?