Investing Into a Rental Property in Merced, CA w/ ADU

[Rafael Gallardo]

Hey Biggerpockets peeps,

I am looking to take on my first investment property EVER. I dont want to be stuck on analysis paralysis so I came here to hopefully get some insight on what I should be looking to expect from all kinds of perspectives. 

I'm looking at a place in Merced, CA.

Some of the facts:

Has 3bd/1bth unit with 896 sqft built in 1983 and a lot of 7,405 sqft.

The ADU is 3bd/1bth, has 1450 sqft, and was built in 1987.

Closest comp sold at about $192k.

I plan to give them an offer @ $160k but dont mind negotiating up a bit. 

Average rent in the area looks to be about $1250.

Tenants currently occupy both units. (Would like for them to reapply to be keep tenancy.)

The worries:

Am I seeing a possible $2500 in monthly income for rent?

Tax assessed value is less then half of their asking price. Would this be worrisome? 

What precautions can I take on this kind of investment?

I don't know if the ADU is permitted by the city.

I ran some rough numbers through the brrrr strategy calculator and showed some cash flow potential.
Any kind of advice is welcomed. Would love any kind of guidance through this process. 

Thanks,

Rafael Gallardo Jr