.🔑 Only one ADU per lot allowed.Why it matters:Charlotte is under major housing pressure, and this is a way the city is incentivizing “gentle density” without rezoning entire neighborhoods.For investors, it creates a structured pathway to add a unit with city support — though the affordability requirements and rent caps may limit cash flow potential compared to market-rate rentals.On the flip side, the forgiveness structure (essentially free capital if you comply) could offset the reduced rental income.My take: This could work best for buy-and-hold investors who don’t mind playing in the affordable space and are looking for long-term, low-cost additions to their portfolio.

Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

Midterm rentals do really well here too, especially near major hospitals, corporate hubs, and Ohio State University.

With three or four units, one vacancy or one major repair can sink your year.

You’re thinking in the right direction — zero lot line / townhome-style developments can meet a real need in rural and secondary markets, especially where there’s demand for affordable, low-maintenance housing but no new supply.A few ways you might approach testing your vision:Market Feasibility Study: Talk with a local planning department or economic development office to get housing demand data (demographics, household income, and housing stock).

The six major metros — Boston, Chicago, Los Angeles, New York, San Francisco, and Washington D.C. — collectively dropped 1.5%, though monthly growth turned positive starting in April, suggesting these markets may have bottomed out.Press enter or click to view image in full sizeThe Supply Crunch AheadWhile prices recover, multifamily faces a different challenge: strong demand is colliding with the slowest construction pipeline in nearly a decade.Cushman & Wakefield’s Q2 report reveals more than 116,000 units were absorbed in the quarter, bringing year-to-date absorption to 216,000 units — matching last year’s robust performance.

That said, there are still secondary and “drive-to” markets (within 2–4 hours of major metros) where a $200–300K property can perform really well.

You do NOT want to overwhelm yourselves with a major renovation on your first deal.Check Major Components: As you noted, verify the age and condition of the roof, HVAC, and water heater.

The company is in a huge crisis - he said the entire accounting department walked out while he worked there.

Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.