Extremes that are not sustainable over any duration as it's just a Japan type arbitrage play. 

If you prefer stability, consistent rent rolls, and fewer moving parts, Pilsen’s the safer long-term hold.Pilsen, is a steadier play in my opinion.

No one wants to see prices pushed lower .Few first time home buyers have the time , experience , or money to play HGTV . 

A safe play for me has always been section 8 housing, but doing such requires a lot of education before then.

If you plan to hold long term, separate utilities and go heat pumps for the new units: they provide heating, cooling, and dehumidification for the basement, play well with tenant-paid electricity, and the rebate lowers your net cost.

Here’s the play I’d run if I owned your setupUpstairs (existing ADU)Leave as-is — it’s already legal and rentable.Downstairs (garage “lite” conversion)Permit for:BathroomElectricalHVACWindows / doorInsulationDo not install:Stove (hot plate + kitchenette is fine)Full closed-off “apartment” layoutLease structure:Rent the downstairs as a:Studio suiteWork-from-home space“ADU extension”Guest suiteOr rent it on a room-by-room basis, which is 100% allowed.6.

Partnerships can help when you have the know-how but not the cash, allowing you to leverage someone else’s capital while keeping control over the project.Creative financing also comes into play.

Quote from @Bill Goodland: I'd be careful announcing you have 400k to play with on here.

This is the lowest level since September 2024, putting rates today back in line with where they stood a year ago.For some broader context, here’s a chart for 30-year fixed mortgage rates over the past 5 years:Even with mortgage rates beginning to ease, affordability has not meaningfully improved, and a recent Wall Street Journal article breaks down the broader forces at play.

But looking back, I also see a pattern that will keep sabotaging you if you allow it... blaming someone else, playing victim, and then bringing those habits into the next thing you decide to pursue.