They are paying you an extra 5% per month.

MAYBE I’d buy the land and lend half the building COST while the builder puts up the other 1/2.

Think about it: a first time home buyer given the choice to buy the same home for let's say half price responds with a hard no, happy to pay double - what does that tell you?

We'll eek out a 10% cash on cash but will convert a half bath to a full bath to increase the value substantially.

Everyone needs to be extra careful and do their homework.

We have a duplex with an extra flagpole lot that we are hoping to set up with an ADU for short term rentals.

But there are also some real challenges, like dealing with lower tenant quality on average, the extra red tape, annual inspections, and the longer time it takes to get tenants placed compared to the open market.

I’m having issues with them as they’ve grown & only worried about their  reputation & anyway to make extra money.

These markets will offer you distressed properties starting at 60kish or so and up to 150kish.For example, let me make up a hypothetical deal.You buy a house for 90k and am putting 60k in to add. half bath, redo the kitchen and bathroom, brand new paint and new LVP flooring all throughout. 

But remember that what is favorable now could come unfavorable in the future as they readjust over time.Reasons many landlords avoid vouchers include the hassle of the extra inspections, the perception of a worse tenant, and maybe the inconvenience of getting rent from two different parties.