I think multi-fam has a great long term potential and am looking to get into that as well to diversify a bit more and have a solid base.

Buy in turning areas with economic bases. 

This is no exemption based on the number of rental units you own.

Any feed back based on your experience so far would be appreciated. 

I have a property in CA and based on what I know, you should bring in a solid $3500-4000/mo even without a renovation of the basement.

Purchase: $80k-$130kRent: $1100-$1500 (no rent control in MI)1% rule: 1%-1.4% rule dealsROI: 10-14%Cash flow: $150-$300/door (after all expenses and budgeting for maint, capex, vacancy)Appreciation: 3-10%+ (has been double digit for a decade)Location: C+, B- These numbers are based on the “sweet spot” in Metro Detroit.

I am not on Pricelabs yet but looking at the rates for March, they look like what I would expect them to be based on our previous analysis.

Just based off of the rental income of the property 

@Emil Pinlac - we're based on the Bay Area so prices may be a bit lower in Sacramento but we've done a few projects in a similar price range as @Whitney Hill mentions - $150-200K of project costs for ADUs ranging from 500-750 sq ft.

There are so many reasons to why people would buy a house that are emotionally based and this might apply for this situation.