You should do all the same level of due diligence you otherwise would to buy the property. 

You cannot get a quality individualized support at this price level.

As a result, inventory levels have remained historically low, particularly in markets where demand is high.

Usually, we're looking at credit scores, Loan to Value Ratio,  & experience level, for the rates and terms.

A few influencing factors will sum up the drive of today's landscape:Inventory & Competition: Although inventory levels have risen some, competition on good deals still seems fierce.

Real Estate Professional status is explicitly not recognized by California, among many other beneficial tax rules that exist on the Federal level.

Took my reserves for down payments to a level that won't allow for another purchase at this time.Given this, as luck would have it, an amazing opportunity that only comes once in a great while came to me.  

@Grant ShipmanIn my experience with these units are very difficult to manage and people at the 30% level also create a new set of problems.

This negative equity position is one of many reasons that adding ADUs in a single family zone is not typically a good RE investment.OP whatever you decide to invest in, make sure you do thorough and conservative underwriting. good luck You’re right in that the level of underwriting I presented wasn’t institutional level - but for your average person just starting out, institutional grade analysis often makes the thought of investing overwhelming.

They haven't fixed the house up to MLS list price level, so why would I pay that price?