BPs community,So I have had four contractors come out and do bids on a basement that I am planning to convert into a legal third unit.

Electrical, plumbing, windows and doors, moved a few walls, new kitchen and hardwood, converted the attic to a living space with a master bed and bath, stucco etc. you get the idea.

You have to purchase properties that will cash flow when you convert them into a rental.

It seems almost like a hack/BRRRR since we are acquiring a rented unit with reliable tenant, a 5 bedroom house we will live in, and additional 1200 sq ft we plan on converting to a 2bd apartment and all will have their own garage. 

This effectively allows you to convert a home zoned as single family into a triplex.ADUs can now be built on multifamily properties.

However, there is potential for a basement that can be converted to an ADU.

It's good for converting capital to cashflow but not multiplying it 10X in 10 years.With your skill set, entrepreneurial bent, networth, cash, credit and goals, active apartment investing makes the most sense.

Once satisfied, you can make the after-tax contribtuions and convert to Roth.

Cash flow (after you convert it from the useless % to actual $) is way too low to hold onto.

I've talked to one of the few lenders from a major bank that does vacant lot loans that then convert to a construction-perm loan, but he claims the rates are locked at ~20% down, 4-5% for 30 years (I can provide more details on specific terms).