@Vincent BerggrenHouse hacking is a great way to start investing in real estate and lower your living costs.

I’ve found that a renovation to add a DADU wasn’t cost effective in my market.

I am estimating a build cost of around $200k - $250k on the high end due to the savings we will be getting from my FIL and our labor.

Therefore, it's vital to calculate these costs before purchasing the property.Seeking the help of a 🏗️construction professional is recommended to create a comprehensive budget that includes hard costs (materials, labor), soft costs (architectural and engineering fees), and contingencies for unexpected expenses.

@Joanne WymanThe issue with these homes is the renovation cost will far exceed the after repair value.

Secondly, if this strategy qualifies for the STR loophole, would I further be able to run a cost segregation study on the unit that I plan to STR, in order to take advantage of bonus depreciation? 

I would weigh those two options out and see what costs less overall between an entire new loan and or the blended rate of the two.

Usually 10% of my tenants leave the place better than they moved in, 10% of my tenants leave the place worse than they moved in and we had to exhaust their security and pay the cost in terms of 6 to 12 months rent to bring a property to listing condition (depend on how long the LTR tenants have lived there of course).

, you may not need the book on estimating rehab costs by J Scott; it's great if you want to check it out though! 

What is the cost of the program?