Well I can buy a preexisting TWO family for $200k in my market so it was relatively cost prohibitive.But, if you can build an 2 bd ADU for $200k and units in your area go for $350k and the cash flow from the additional unit gives you well above 20% above your debt service, it might be worth looking into further!

I'm also interested in hearing/ reading any stories (successes and failures) about investor interactions with preexisting communities. 

You'll need a letter from your attorney, investment advisor, or CPA, which may require some billable hours or a pre-existing relationship with the professional.In contrast, 506B offerings do not require third-party certification.

Today you will never get an approval to do that with any of those homes, but those units are allowable because they pre-existed the change in the use guidelines.

I found costs can really get up there and get even worse if you have certain types of preexisting foundations that are common in old buildings as many in DC and other east coast cities have. 

So the only way they would insure you, is to have extremely high premiums.These properties are preexisting properties for your firm correct and not new. 

My point was that pre-existing 1 bedroom homes that can do those kind of numbers are very rare, and those that do are very expensive because they are in great locations.

This is a pre-existing ADU which needs some work in order to make rentable.

There has to be a pre-existing relationship prior to them investing in your deal.  

Alternatively, it can be set up in the US if there isn't a pre-existing entity.