Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

I'm just starting out with a STR and I'm in the process of vetting companies for tax strategy and asset protection. 

In other words, two financing agreements "wrapped" together.But the goal here would be for the 2nd buyer to close all-cash (to skip the financing process), would that still work? 

And before getting too far along in the process it might be worth doing a title search to check on any potential liens on the property.

When it comes to getting approved for a loan, the process can be a bit more complicated for foreign citizens.

I've talked with some other investors who had bad experiences with other agents and reading some of the stories here makes it even clearer the right team is paramount.If you decide to look at West Michigan feel free to reach out and I'll give you any data you need.  

@Alex Washburn makes really good points - the process is definitely not easy. 

The process was seamless.

Possibly already permitted outbuildings that already have plumbing such as workshops, offices, etc might be able to be converted to an ADU at a cost that does not result in the cost being more than the value added.Building an ADU is a lot of work and can be a slow process.  

This process has been working really well for me.