I do drop down significantly, but I factor in what it would cost to run my place on a day-to-day basis and make sure not to go lower than that.

Not having an exit strategy on two different partnership ventures led me into a court case and cost me tens of thousands of dollars on another.

Usually, borrowers purchase the lot first and we usually lend to 80% of cost up to 70% of the as-completed value.

I track everything at the "buy" on a spreadsheet as far as income, expenses, CoC return, ROI and have another spreadsheet to estimate and track all rehab costs.

There is a learning curve but it is pretty powerful and their support is great.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years.

I know a lot of people who do it, I would ask what is your exit. for example we have done it when we were doing some renovations and had a line of credit as well that we were going to transfer the cost too.

I may get flack for saying this but there is a wealth of information available at little or no cost and local REIGs that can teach you about your local market. 

The cost to get the ADU rent ready and fully permitted was $25,000, most of which was the exterior landscaping.

The goal is highest rent for lowest investment cost and lowest maintenance.