Renting out rooms will require you to modify any existing lease you use.How will you address:- Utilities- Food- Bathroom times- Parking- Privacy- Toiletries- Laundry- Etc.

Check for big-ticket items like roof, HVAC, and plumbing.

Look up with an internet search on the lifespan of the item to find what percent is 'used up' and multiply that by the cost of a new one.

Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

This inspection breaks the findings into 3 categories 1) not normal wear and tear which is fixed and charged to tenant.  2) normal wear and tear that will be fixed and paid for by LL 3) items that are normal wear and tear but will not be addressed at this time.  

He has so many great insights and actionable items within his book.

The most important items to consider for approval is that you have very clean credit and the lender will also analyze the exact location of the property to consider how long they will take to resell.

I guess without knowing your personal financial situation if I had to make a decision it would be thus: if I could get close to REAL cash flow break even (this means counting an expense reserve for items that will have to be replaced in the future) I’d rent it out.  

These inspector items just added to my over budget.Enough rant on inspectors Different project and rant on permit process.  

I have them sign addendums to the lease that state how to treat areas of the home, ex: kitchen sink, no grease/food items (scrape your plate in the trash) toilet: only the 3 P's, no flushable anything, I even provide them 4 high quality AC filters and have them set a reminder on their phone.I like the phone reminder.