Just to re-iterate, however, I have been doing this for quite some time and I have been making a very good living at it in Florida and California.

You're going to do a better job on #2 and #3 if you've already completed an iteration before that.I focus on one deal at a time.

It pushes the problem into the future when you may want to sell it and you iterate over the problem.if not, then you have to address the issue and the history should help you get a variance easilymake sure you say the following, not in writing:  "all these other properties are in violation also, so why are you discriminating against me?" 

It's already been said but I'd like to re-iterate the two most important points as far as I see them. 1) You want to get rid of a incoming producing asset but keep a depreciating liability?

Any outflows (money out of your pocket) should be a negative number, and any inflows should be positive number.Once you have that, just use the IRR function in Excel:=IRR(<first>:<last>)If you only have 1,2, or 3 periods, you need to enter a guess at the IRR since Excel does an iterative calculation.I haven't seen IRR being discussed too much around here, not sure why.

Due to inability to talk to the necessary persons to perform this vetting, I drop the current into the Pending file and pickup the next and iterate on this process.Once the personal vetting is done, then use your written criteria to be sure the applicant "qualifies" and if not, reject here and do not pull the CR, send the rejection letter.If tenant qualifies to this point, your evaluation becomes depend upon the CR and BG(background) reports. 

Stay agile ;) *I also had a front-row seat to the extreme losses, watching RE borrowers and developers go from 8 & 9-digit net worth to negative in the matter of a couple years*“An asset bubble is like an orgasm; It feels the best right before it’s over.”Most recently, here's the questions I've heard answered with "It's different this time.""

Originally posted by @Nicolas Paez: As a former Fannie Maer, don't do it@Eric Stoltz, but if you do, do it, you might want to wait after 12 months pay history, and then never be late for a payment by even a day as long as you pay on the note.

I would say that 1) it's important to start talking to contractors experienced in building ADUs in the design phase as you would know what everything is going to cost in your design and can iterate your design based on costs.

Taking daily action, measuring results, and iterating are what it's all about!