Although the percentage of the increase is large, the determinative factors are whether the resulting rent is so great as to shock the conscience of a reasonable person and was effected for the purpose of compelling the tenant to vacate."

For example, here in Columbus we've got Intel building their mega-fab which is already driving up property values and rents in certain submarkets.

Other risks, the contractor walking off the job, a storm hitting and delaying the project for weeks, someone breaking into the home and stealing stuff (which happened just the other day to a client of mine), a squatter, or drunk driver driving into the house (happened a lot at my old job as a firefighter lol).

In many cases, whatever weakness got them in that position (lack of focus, lack of drive, failure to take responsibility for their destiny, etc.) will also make it difficult for them to succeed in real estate. 

Investment Info:

Single-family residence wholesale investment.

Purchase price: $100,000

Sale price: $147,000

Contributors:
Peter Vekselman

Partner Driven and Debra Cottom teamed up to...

Will use our 4 wheel drive tractor to pull between the tree rows.

I actually think your company, Drive Home Capital, does have a good track record in the space.

Investing in the market that you have knowledge of and the economic factors that support it is necessary. 

@Mike Lambert That is highly dependent on a multitude of factors like size/luxury class/location/housing type/owner restrictions/etc.

FHA allows the construction or renovation of an ADU on the property by refinancing into a 203k loan, but the property must remain your primary residence.This stuff is subject to change, lender specific, and subject to other factors.