Buying multi-family with possible ADU

[April Causapin]

Hi! Will this be a wise investment?

Purchase price: $1,100,000

15% down payment, 7% interest rate

Duplex: Two 3bed/1bath + den with unpermitted bath/kitchenette in two car garage. 

Market rent: $2895 for each. I’m planning to update and repaint, maybe increase rent on one side to 3000-3100 while I live in another unit and replenish to legalize garage space.

Monthly payment: $7033. 
landlord pays for water, everything else is separate.

It just feels very tight in the beginning before getting ADU gets legalized.

I wanted this property due to location but unsure if it’s worth to risk due to high monthly payment. 

Appreciate your insight.