Pro's A:) It would generate higher rental income being a 2 bedroom2) Convert the ADU into a 1 bedroom / 1 bathPro's A) Cost less for construction Pro's B) By doing so, I can keep the garage door and devote a portion of the garage as a storage area to the front/main unit which will make the front unit more desirable and command a higher rental income from the front unit since a lot of tenants seek having storage/garage space from my personal experiencePro's C) By making the ADU a 1 bedroom instead of 2, the back unit will likely be rented out by a single individual as opposed to a family.

I worked with Cain McNeil, a local real estate agent (who I would highly recommend) and Irene Commander, a local lender (who I would also recommend).

For example, a pre-HUD home in rough condition in a major market where there is a strong demand might sell for 60k, while that same home in a smaller market with other affordable options available may only command 15k.

A good two bedroom apt. in the other parts of town might command $700-$800. 

According to your numbers, you'll be living in an area that commands $2000 rents, for less than $500/month.

Get the full advertising package, if you get military renters you can hold them accountable through their chain of command if need be.

your description to me sounded like some nehiborhoods in Tacoma I made loans on .. and ended up foreclosing on very rough for sure... what is the section 8 payments on those houses. million dollar homes usually command 4 to 6k a month in those areas is hud paying that amount ???

There's so much work that they can command high prices and I have to admit, I don't blame them for doing so.  

If you are paying 10% to a PM, that 10% is much less for a C class property than it is for something commanding a higher rent, yet the phone call (or whatever needs human capital) from the C tenant takes a much time to resolve as the B tenant.Some hairy-chested PMs however, specialize in that niche (like @Jeff Schechter does apparently). 

Assuming you're on shore duty it should be easy - work the people at your command.