If you’re in the position to buy multiple deals because this nursing home may get properties frequently.

In general it is not worth building a single ADU for a variety of issues but the largest is the cost to add the ADU is typically far greater than the value added by the ADU.  

Be mindful of short-term capital gains tax, as profits from flips held for less than a year are taxed as ordinary income, and frequent flipping may result in self-employment taxes.While profits from flips do not qualify for 1031 exchanges (since flips are considered inventory, not investment properties), you can minimize your tax burden by deducting allowable expenses like renovation costs, loan interest, and holding expenses.If you're considering diversifying into rentals, explore opportunities to benefit from long-term tax advantages such as depreciation and lower long-term capital gains rates.

So your $10k could get you a property but what you don't think about is the tenant class is lower and the ups and downs are more frequent.  

I know there are a variety of screening practices used by landlords and property management companies.

@Dave Tasset I haven't personally invested with this company but have heard good things about then. 7e Investments, Chris posts frequently on BP.

You would probably get a variety of answers even from tax professionals.

I work with a lot of MTR investors and what I am seeing frequently with multifamily acquisitions, particularly with new investors, is that they often test the property just like you're mentioning, as a way to dip their toes in the water and see what works in their area and for their personal style.

Just a heads up, we don't post our prices publicly because we raise them frequently given our growth, and don't want potential members to get outdated pricing information. 

We are looking to buy a condo in Chicago as the new rental, for a variety of reasons, but most importantly because it would rent better in the city, and it fits our desired price point (so we can allow for the rest of $$ from the sale for paying off their Oregon home and pay all, or some of the taxes on the boot).