Quote from @Mike Dymski: This is amazingly helpful, we are quickly adding units and we are also paying a lot in fees for bank account additions for ACH adding for each owner.

Hi @Mark SorecoIn recent year it has been an overflowing of digital property management companies, many of which are not making any many and constantly investing in customer acquisition, that is the main reason that you see so low coat on their offering.If you go to stablish digital property management like belong home you will see that prices are similar than a local property management and they make you save many offering you additional services at no cost.You have to evaluate what would it be the additional work that you will have to do to get at the same level than the local PM.You have to analyze this as a business owner like any other services that you will buy from a service provider.

The extra cash flow that results when you don't have to pay taxes can be used to upgrade the property or purchase additional properties.

.▪ Brief risk/mitigation bulletsDoesn’t need to be heavy, just shows we’ve already thought through the downside.Those couple of additions have made conversations with lenders much more efficient on our end, especially when moving from preliminary interest to real underwriting.Appreciate you sharing this, would definitely like to take a look at your full checklist PDF as well.

Quote from @Mary Jay: @Mary Jay While I can’t tell you exactly how much your tax will be, I can help clarify how the gain is generally calculated.When you sell a rental property, your taxable gain is based on the difference between your sale price and your adjusted basis; not on how much you owe on the mortgages.Your adjusted basis starts with your purchase price, plus certain closing costs (if they weren’t deducted previously), plus the cost of any capital improvements you’ve made over the years (like renovations or additions).The gain is your sale price minus that adjusted basis.From that gain, you’ll also have depreciation recapture, meaning the total depreciation you’ve taken (or should have taken) while the property was a rental is taxed separately.

Here are some of the reasons:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

The layout allows for an easy addition over the garage, potentially adding 2 unitsThese units could generate approximately $36,000/year at $1,500/month rent per unitFinancial Overview & Valuation: At current income and stabilized rents, the property offers a 6.5% cap rate on a $700,000 valuationRenovations and addition of two units would cost approximately $350,000Post-renovation, the ARV (After Repair Value) is projected at $1.4 million, with the potential to double the annual revenueRun Your NumbersWith the current market pricing in the mid-$600,000s and being on the market for only 30 days, 5000 Florence Ave represents an exceptional value and scaleable opportunity.

In addition tenants talk.

I currently have a HELOC that is in payoff locked in at 3% for the next 25 years for about $44K, but it's preventing me from  accessing $450K in additional equity. by the time I save that amount I want to buy a property.

Using just addition and subtraction to sort out an algebra problem will always leave a person confused and frustrated.