It also makes cleaning easier, as you don't get that layer of nastiness where the sink meets the counter.But, if this is a low end, low rent type area, probably best to do it as cheap as possible.  

Lastly as an illegal unit it is  huge liability if there was a trip and fall claim, fire etc your insurance may not cover.I recommend renters insurance for whoever lives there is mandatory to add another layer of protection. last option not considered is you living in the bonus unit to have a free place to live with minimal risk 

After some research, I'm thinking it would be a good opportunity to proceed with the offer and to set aside the "free" money for use for repairs/renovations and holding costs to have some extra cushion.There seems to be much debate on the use of credit cards in real estate investing, but considering my circumstances .. 1.  

. - Due to all the EXTRA handlholding with the tenants in these circumstances, we either terminate our management or require a higher monthly fee from owner.If you are a PMC reading this and you do NOT have these checks in place for new clients - the market slowdown is going to cause you a ton of headaches with desperate owners dumping their problem properties on you.

While comfort should be prioritized, extra amenities like gym equipment isn’t necessary.

One of the things that helped me early on was connecting with investor-friendly agents who weren't just selling properties but were genuinely willing to go the extra mile.

And you wont have enough equity to refi out any extra (you need 20% equity before you can start pulling out funds). 

i think it's because of the tremendous rise in home equity in the past 5 years.i used a HELOC to (1) help with a down payment on a short term loan, that I then paid back in full when I refinanced; and (2) to consolidate some higher interest debt, which I am now paying back by making extra payments against the principal since HELOCs are generally interest only for the first 5-10 years. 

Most developers would just utilize the extra yard space for outdoor storage.

They just buy not caring about anything extra.