I would also tell you to be extremely careful when doing contracts with builders. 

this is mission impossible.. although you might have some fake lenders approach you looking to steal up front money from you.. so be careful. 

In my experience, a garage ADU can still be profitable with long-term rentals, but you'll need to crunch the numbers carefully. 

So if we had not been proactive on this, there is a good chance Chase never would have noticed or cared about it.

@Cameron Porter +95% of the land bank inventory is already picked over by the time it hits the public.The only people we know that have bought ALL went over budget and only the increasing market covered what would have been losses.So, proceed VERY carefully!

Always pay on time, take care of their units as if they were their own, etc.

Lightbulbs, batteries in smoke detectors is on them and written in the lease.You can really do whatever you want if it is written in the lease contract but bear in mind they don't own the home and won't care on certain things.

Yes you will need to make sure you have the cash to take care of any repairs that are needed out of pocket.

You'd be surprised how often a deal can happen using this strategy but it is also important to run the numbers and make sure your COC return, etc are in line with your expectations.Probably the lowest risk is partnering because a seasoned investor will verify the deal (hence their participation) and likely take care of the initial money required.

If you're looking to buy a cheap property there, be very careful.