FYI: being added as additionally insured means we get a nonpayment notice, so we can terminate the owner BEFORE we have exposure. 

And thanks for the extra info on the wifi speed!

Leasing becomes revenue-only againLeasing lines are reserved for prospects and renewals.Maintenance never competes for attention or urgency.Result: fewer missed calls, faster response times, higher conversion — without adding headcount.Bottom line:This isn’t a staffing problem or even a process problem — it’s human-in-the-loop overload.AI removes context switching by design.

Small multifamily usually beats a SFH because multiple units help cover the mortgage, while extra bedrooms typically boost rent more than extra bathrooms (within reason).That’s why many beginners gravitate to Midwest markets, lower entry prices, solid rental demand, and a much better chance to break even or cash flow while you build experience and equity.

We are in bay area as well and have been considering adding an ADU to our backyard for cashflow. 

@Bob Dole Regarding your math - taking the price the property is today or its value, and then adding value to that over time and backing into a caprate is not generally how I'd go about it.The caprate and your return on this seemingly commercial asset is based soley on the incomes and the leases in place at the property. 

For context, I do plan on adding onto my portfolio this year

Lehigh Valley, PA.Had one for a while, ended up converting it to long term because it wasn’t worth the extra management

I don't want to extra stress of managing it with my current lifestyle.

If I can find properties with built-in equity, then Option B may be possible for me.The idea is not to do a BRRR or pull cash out, but simply to:⁍ Use less cash upfront on deal #1⁍ Preserve capital so I can move faster on deal #2⁍ Refinance later to remove PMI and ARM riskBased on my rough math:⁍ Initial loan at 10% down ≈ $180k⁍ To refi at 80% LTV without bringing cash, ARV would need to be ≈ $225k⁍ Realistically, most near-turnkey deals won’t hit that, so I expect I’d need to bring some cash to refi⁍ Estimated "extra cost" for this strategy (PMI + higher interest for ~6 months) is roughly $1–2kSo my core question is:Does it make sense to intentionally accept a bit of short-term inefficiency (PMI, ARM, refi costs) in exchange for faster portfolio growth and better capital velocity early on?