This group alone has posted nearly 100,000 combined times!

"I focus on working directly with property owners by becoming their last tenant — basically combining the role of tenant and property manager into one.

If you put all of your eggs into 1 relationship, you will lose out on good deals.I just closed on a great deal a few months back which my original lender absolutely crapped the bed.

High Rental Income Potential;       In LA County, you can expect average ADU rents around $2,050–$2,550 per month for a one-     bedroom unit.On a construction cost of roughly $150,000–$220,000, that translates to annual gross rents of $24,600–$30,600, or a 7–15% cash-on-cash return before financing.Strong Property-Value UpliftHomes with an ADU in Los Angeles often sell for about 35% more than comparable properties without one.For a $800,000 home, that’s roughly a $280,000 increase in appraised value after adding an ADU.Solid Cash-on-Cash ReturnsEven paying cash, you can net 10%+ annual returns on your build cost from rental income alone.And financing the project can still leave you with an $8,000–$10,000 annual net gain after mortgage costs.Resilient Demand & Market DynamicsLA’s tight housing market keeps vacancy rates low and rents high, supporting steady occupancy.Regulatory reforms have streamlined ADU permitting, cutting wait times and softening approval hurdles.Tax & Incentive BenefitsYou can deduct mortgage interest and depreciation on the ADU, improving after-tax returns.Energy-efficiency or solar incentives can further lower net build costs.Things to keep in mind if you already own a property and can't afford to buy another.Upfront Costs & Timeline: Expect 9–12 months and $150K–$250K all-in.Permitting & Utility Upgrades: May require separate electrical sub-panel, meter, or sewer hookups.Maintenance & Management: Factor in insurance, taxes, and occasional repairs.In Los Angeles’s high-rent, low-vacancy environment, an ADU typically pays for itself in 6–10 years through combined rental income and increased resale value—making it one of the most compelling "home-owner" investments today.

Morgan put recession odds as high as 65%, analysts have shifted their focus from tariff fears to housing sector weakness as the most immediate threat to economic stability.The warning signs are mounting fast:77% of Americans say it's a bad time to buy a home (Fannie Mae, April 2025)Mortgage rates hovering near 7% are crushing demand (old story)Home Purchase Sentiment Index shows a net-55% rating for buying conditionsInflation-adjusted residential investment remains flatCiti Research expects housing activity to contract in Q2 after a sluggish start to the year, with the combination of falling permits, rising inventory, and slipping prices painting a picture of a market running out of steam.

You could explore combining a conventional mortgage with a renovation loan or using your own funds for part of the work.Either way, the more experienced and financially prepared you are, the better your terms will be.

Combined, these bills represent a fundamental change in how we think about land use.And they’re arriving at a critical time.

Check out this recent thread on LLC’s, it’s pretty eye-opening that of all the very experienced investors on here, with centuries of investing experience combined, the consensus was that LLC’s are not needed for most investors:  https://www.biggerpockets.com/forums/926/ Of course gurus will tell you that you need one before you even have a single property, because it makes them sound smart.

This means you'll either have to save up more for a bigger down payment, find a cheaper property, make offers well below asking, or probably a combination of all 3. 

To verify international rental applicants, landlords can utilize a combination of standard tenant screening methods and specialized international verification services.