ADU increase value less than the hands off ADU addition, but a developer is not a hands off ADU addition.Thanks

I have purchased an off-market property from an investor who now wants to sell the rest of his portfolio.

Generally people in precarious financial situations are chronic not a one-off.

He is correct that a single ADU in a single family zoned area is unlikely to return as much as the hands off cost and is one of many reasons that adding a single ADU in most single family areas is not a good re investment.  

If not, you’re probably better off with a more conventional approach.  

If it isn't the same amount every month - an entirely new batch has to be setup for each "off" amount and refunding them is also a bit of a hassle.  

Not a big sub to fan and definitley not a fan of people trying to wholesale deals off of the MLS.

Which brings me to another question; the agreement states that the homebuyer/occupant will retain home owners insurance on the property and list the lender as loss payee or first lien holder on the insurance for the life of the loan and yes I know it's in the agreement that was signed but I am wondering if by law it's even required once it used to be 20% but now it's 10% of the loan has been paid off, even big traditional mortgage lenders will remove PMI costs after 10% has been paid off.

Explain.I really like this question for discussion Venice, but one very major factor left off is at what risk exposure. 

I personally would not invest in detroit as historically its not a appreciating market and for cash flow and I invest primarily for appreciation - I go off the location location location mantra.