ADU conversion, Phoenix market cash flow
Hey BP community,
I'm looking at purchasing an investment property in the Phoenix AZ area. Based on the prices i'm seeing out there, it looks like the only way anything would cash flow is to find a property with some sort of detached structure to convert into an ADU.
Has anyone had any issues working with the city while trying to convert into an ADU, or is it a pretty straight forward process?
Additionally, are people having success making this strategy cash flow in this market? It looks like I'd have to be in the 300-400k range on a property and then still budget for an ADU conversion to positively cash flow with what rents are at in the area.
Any input helps, thank you!