I have an interesting opportunity to co-sign on a property that has been rented out via Airbnb and Weddings. 

We are building credit quickly and have some sound budgeting strategies in place.

What if the beginning sounded more like real life:After sacrificing and doing without for years, managing my budget and credit and prioritizing learning over showing off,  I finally saved enough for a down payment. 

Especially when you're a new investor with small funds...at least until the deals start to come through and we have bigger budgets for marketing.

When local governments have statisticians confirming population growth--and no interest in passing a State Income Tax--then local politicians can be expected to boost property taxes as a way to budget their "great ideas" and other "pet projects" which ensured their elections. 

The nice part if you have some cash to work with, and if you're open to out of state, I would just start looking at your top cities you WANT to move too and decide which of those top cities you can get a multifamily for the budget you stated. 

New underwriting at the same rents as the other apartments and assuming a 85% occupancy, and budgeting $300 per unit per year for CAPEX, my new cash on cash is 9%.

I realize that might be a little low but I would figure in a rehab budget for up front costs if I did purchase it. 

Also you have budgeted 0$ for repair costs, which is almost never the case.

Estimated monthly mortage/insurance/tax + loan payment would hover around $3500, not including utilities.Since we have lived in 3 ADU's in the past as tenants, we've accurately estimated that our proposed 1 bed 1 bath with fenced-off yard and pergola, ADU could rent for $1700/mo easily, with the tenant paying their own utilities.Our budget is no more than $475K, including money earmarked to repair main house (because honestly, we won't be getting anything pretty in San Fernando Valley at this price range) and construction loan for the ADU.