Totally get the analysis paralysis — STRs can look amazing on paper, and then the “yeah but…” list starts stacking up fast.If Atlanta is where you want to get started, I wouldn’t write it off yet… but I would widen the lens a bit so you can compare ATL vs. alternatives with the same math and assumptions.

Know that your electric bill is going to go up but when you compare it to fuel costs, it should still be lower and more convenient for the tenant.

I’ve also noticed room-rent strategies penciling better than traditional 2–3 bed unit rents in certain neighborhoods.Would be great to connect and compare what you’re seeing on the lending side vs what I’m seeing on the acquisition side.

Great question, and you’re thinking about this the right way by comparing markets before you jump in.

Happy to compare notes and share what’s been working for out-of-state buyers pursuing the same strategy.

If you’re going to compare stocks to real estate, then you need to compare investing in a syndication or REIT, otherwise you’re comparing apples to oranges 

Hi BP friends,I’m totally new to building and real estate investing, and would really appreciate your thoughts on building an ADU in Torrance, SoCal.My property:Lot: 7,800 sqftMain house: 1,700 sqft, 4B3BMain house Includes a 1B1B in-law suite with a separate entrance, connected to the main living areaThe area:Torrance median sale price: ~$1.02MMy home is in Northeast Torrance— a more affordable part of the city compared to West and South TorranceSchools are solid (ratings 9/7/9)My plan:convert current 2-car garage to one-car garage, and build 1B1B ADU (700 sqft)Designed with vaulted ceiling + great natural light (stronger interior feel than most local ADUs)Budget: $175K (ADU) + $80K (lot landscape)Build time: 8 monthsEstimated rent: $2,300/moCan do long term or mid-term rental (20 min to 3 medical centers), no short-termROI looks strong and easier to manage locally than out-of-state investingLocal ADU = lower management cost + easier eviction if issues come upMy questions:A few years ago I saw posts saying banks appraise ADUs below build cost, making it hard to pull the equity out or sell — is that still true today?

The decline is visible but nothing compared to GFC.  

One thing I’ve seen repeatedly is that most underwriting mistakes aren’t spreadsheet errors - they’re assumption errors that go unchallenged.A few that tend to show up only after someone has been burned once:• Treating in-place performance as “temporarily bad” instead of asking why it exists and whether it’s actually durable• Assuming value-add execution speed without factoring in operational drag, leasing friction, or human error• Believing future upside will be underwritten the same way current income is - it rarely is• Underestimating how aggressively lenders normalize expenses, reserves, taxes, and insurance compared to investor models• Thinking a strong sponsor or guarantor can compensate for weak cash flow under stressAnother big one is timing.

So that could be a small and fun element in different locations.