And as investors we should know this, but always anticipate higher costs and longer waits.EXAMPLE Breakdown of Costs:Plan Purchase: $1,500Permitting Fees: $2,500-7,500Site Preparation (grading, utilities, foundation): $20,000–$30,000ADUs require separate utility connections for water, electricity, and sewer but you can tap into existing utilities at the primary houseIn Raleigh you CANNOT split lots fee simple, so setting up completely separate utilities would not allow you to section off the ADU as of nowYour ADU must be on a permanent foundation (no wheels, no ability to move the structure)Construction (labor and materials): $100,000–$150,000Low-grade: $150–$180/sq ft averageMid-grade: $180–$220/sq ft averageHigh-end: $220–$250/sq ft averageLandscaping/Finishing Touches: $5,000Total Estimated Cost: $125,000–$200,000You could easily spend $200k+ with super end high finishes, custom designs, complicated sitework, adding a second story or more sqft, etc.

The Sampling Method is typically used for properties with nearly identical blueprints such as fast food chains or nursing facilities.EXPERIENCE OR “RULE OF THUMB” APPROACHThis approach is based upon the specialist’s experience in the industry and their ability to estimate the costs.

@Kyle Atans  for me for the younger investors or starter investors is  at least use that 100 or 200 a month positive to paydown debt at an accelerated rate it will save them a ton in the long run and if they can get them paid off in 10 to 15 years that's a good thing.. its not like saving 1200 a year is going to materially affect their ability to buy unit number two and if its that tight not sure owning rentals is that great of investment anyway.

Municipio Growth Resident population (No.)

I understand that appreciation certainly helps an individual build equity, but I also am attracted to consistent cash-flow with a steady (albeit possibly slower) appreciation growth. 

You can always leverage rentals within their ability to service the debt. 

No way lights are running up a bill by $250 in an apartment.

Hello everyone, I purchased my home two years ago, and currently, I have a tenant renting a room for $800, which helps cover my mortgage. This was my first property, and while it's been a great learning experience, I ...

The ability to manage investments requires a desire.

Thankfully development has given me an opportunity to have the financial ability to have that choice.