I recently converted a detached garage to a separate dwelling (ADU) that had its own permit and CO, and took action going in to make sure that it got considered both separately and in addition to the main house on the same lot.

Are the bathroom spa additions worth my investment?

Luckily we always build in a contingency, but we like to have that left at the end . . . at least we have that expense addition covered.  

You might also consider how each option affects your long-term strategy, does refinancing the first property give you more flexibility to buy additional properties later, or does acquiring a second property now better position you for future appreciation?

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.

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.

.▪ 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.

Funding & Structure:What’s the best way to secure additional funding beyond my partner’s $35k, like hard money, or private money? 

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.

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.