My town of 2500 has a decreasing population for all of these reasons.

so you have a store of value that will decrease in value if you liquidate it?

After financing the build of the ADU, dealing with tenants and everything that comes along with that, sacrificing your own space if you occupy the home and the decreased value of your property due to the fact that there is no longer a garage or a good portion of outdoor space is taken up by this ADU....

Home prices have decreased over the last 18 months so there is lack of good options and values still above normal. 

Second year distributions rise to 5.27%, third year 7.27%, according to the projections.Those projections may be at risk, for many reasons: the recent huge increase in interest rates -- increasing the cost of loans and decreasing valuations, insurance costs have skyrocketed, real estate taxes are up, labor and material costs for repairs & renovations have increased, etc.On the plus side, the majority of the ODC funds were designed to be high value add projects with plans to increase operating efficiencies, add tenants and raise rents.  

This will decrease the amount of your out of pocket expenses.

One way or another, however, the investors must work to pay down loans, increase rents and decrease expenses wherever possible.

It also returns significantly more money while you wait for the next deal (with the risk of the value of your holdings decreasing when you need it).Feel free to message me if you have any questions.  

I've played around with the numbers so I can see the change if the purchase price goes up by $50K or if the cash flow decreases. 

One way or another, however, the investors must work to pay down loans, increase rents and decrease expenses wherever possible.