Before we wised up, my wife and I went through three brand-new Toyota RAV4s in six years and were discussing the merits of a Volkswagon Tiguan versus a Lexus NX for our next car.

Doesn't seem like appraisers are able to give ADU's the value they merit, what with their guidelines and lack of comps.

But if you provide some background to the lower price, it might have merit. 

I do believe there is some merit to that approach as well, the biggest obstacle is your first deal.

I am just getting started so I am looking for help in determining the merits of this unusual opportunity… or maybe not.The property…The current tax assessment is $686K and ARV ~$780K.The house in question is a single family 4br 2.5 bath built in 1996 in Massachusetts.

Seems, again based on the feedback, that obtaining a loan for the next property is problematic, but if there is a steady cash flow already in place with a number of properties, creating the LLC with those cash flowing properties could resolve that issue (not a lender, so speculating here).Plus at the point when you have multiple properties, maybe you're at the point of expanding your business where an LLC could make more sense (attracting employees, completing state/fed documents, etc.)Again, just speculating a hypothetical and wondering if there is any merit to planning to incorporate at some point in the investing cycle.

Have the inspection done and determine if the deal still has enough merit

Quick question, is there any merit to buying properties that would fit the mold of a buy and hold, but instead doing a lease option to a tenant-buyer immediately?

The question is whether the suit has merit and its chances of success.  2)  Your rules will vary STATE BY STATE. 

You might have a hard time reducing any damages because there's no merit of quality before/after.Best of luck.