It sounds interesting but potentially cost prohibitive or not having a great return for the cost of the adu build.Do you have any examples or know of anyone that has purchased a sfh and built an adu successfully for cash flow?

@Roxie Kim was there room in the deal for repairs to be made and still return well? 

Something to think about and build in to your evaluations.As you noted $126/month will return the $7k in 4.5 years.

These numbers are horrible as far as the cash on cash returns.

just a couple of reasons:No one can buy ALL the deals themselves.Many monetization feeds on a highly ranked site (book sales, pro membership, etc) Trust through notoriety can have a high return on investment (see M.I/oceanpointe for negative example)None of these are good or bad in and of themselves.

I would like to here from the group whether they offer or are offered lower or higher returns.

Where would you say is the best state and city to buy some rentals in order to get a good return?

Opportunistic investments typically do not have in-place positive cash flow, need a lot of rehab, are higher risk, are financed differently, and typically command a higher return to offset that risk.

I  TRIED TO DO 990 TAX RETURNS FOR FY 16 AND FY 17 PLUS, WE HAVE A RELATED LLC BUSINESS ENTITY.  

There is a law of diminishing returns here because lenders will not let you take out all of the equity for your next purchase.