Therefore, I wonder if an earnest money deposit of $50k is normal for a newly built single family house? 

This implies residential units can be built at lower costs and provide better return. 11) adding an ADU to SFH can make the SFH fall under rent control.

This renovation took 2.5 weeks for two guysScope of WorkDemo and gut entire kitchen, gut one bedroom, and partial gut of bathroomBuild new closet and frame out a wall to create a bedroomInstall new laminate flooring in two bedroomsInstall new subpanel and new electrical for entire apartmentNew (and some reused) cabinetsNew quartz countertopNew (but bought used) 24" rangeNew microwave and fridge (new fridge not shown in photos)New toilet, medicine cabinet and vanity light in bathroom New built-in kitchen table and chairsCost of Work (approximately)Labor $6,500Cabinets $2,000 - I bought some nice, used Ikea cabinets from Craigslist for a previous job and I had some left over.

Here’s a quick checklist to cover your bases:Property Condition: Get a thorough inspection to assess major items like the roof, foundation, and HVAC—this helps you plan for any big repairs.Financials: Account for all costs, including taxes, insurance, maintenance, and property management fees if applicable.

The foundation was noted as good, and the foundation in the basement doesn't show any obvious signs of problems that you might typically see with foundation problems. 

Can't include furnace, hot water tank, central ac and some other built-in appliances - check your local ordinances.

I think the market has to really shift, where people just don't want to take on rehabs for there to be equity built into the deal. 

@Gil Levy I recently completed rezoning a project from I-1 (Light Industrial) to C-1 (Community Business District) in Sylvan Hills and built 3 story Triplex.

That will allow you into the market and set you up with a good team, built into the property management.  

This increased the average density by 50% and opened up opportunities for multifamily and ADU to be built on almost all residential zones.In a situation like this, new opportunities are bound to present themselves to homeowners and to investors.