Leverage magnifies return.3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

The key is to clearly document investor returns as performance-based debt, not equity, and to secure their position with a lien or deed of trust if possible.

Leverage magnifies return.3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

Most of our investors started investing because they're too busy to buy and manage their own properties, but we have a lot that also got tired of being a landlord and/or realized they could make similar returns without the headache. 

Either way, the income still ends up on your federal return, you’ll just have to file in Texas if your gross income is in millions (probably not applicable to you right now).This post does not create a CPA-client relationship.

I aim for both.I try to look for markets where I can get an overall 8% rate of return of which 4% is cashflow and 4% is appreciation.Some years, cash-flow wins out and there is no appreciation.

I’m concerned the WCB will treat this as if I had an employee superintendent, which would be a violation.So I’m weighing my options:Amend the 2024 return to reclassify “superintendent” as “Outside Services,” since that’s what it really was.Argue that it was an independent contractor, not an employee.Acknowledge it and request penalty reduction.Questions for the community:How strict is the WCB in cases where an S-Corp owner is the only employee but uses outside vendors/contractors?

.- Returns like IRR, cash-on-cash ROI, and equity multiple update instantly.- No need to adjust formulas — it’s plug-and-play.I’m currently sharing the lite version with a handful of investors to get feedback before rolling out the full release.If you’d like to test it out (and give me feedback so I can refine it), feel free to reply here or message me directly.Question for the group: What features do you find most important in a deal analyzer? 

Our next one may be preferred return only.

If someone is going to buy a property that is tenant occupied, they're probably putting 15-20% down either with a bank or DSCR lender - and that RETURN (cashflow) would need to make sense for that kind of investment.