The management company has replied that they don't coordinate with neighbors and just want me to cover the cost of all the repairs. 

To me at my current knowledge level, this deal only works if taking over the loan - to limit the out of pocket money to acquire the property since the outside reno and new septic would take up the bulk of rehab costs. 

Does Hard Money typically cost 30-40% of the purchase price?? 

I lost $3,000, and it could have been much worse.This is the cost of making bad hires.

The current status of the market is low end rentals land lords that let the houses look like crap. 

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

Then if I have additional concerns I call in an expert to get further information and an estimate on what the repair will cost.

Where is the property located.assuming the seller added the ADU and did not disclose the ADU in disclosure forms, you may have recourse (depending on the rules of your jurisdiction) but it may cost you some legal fees. 

In a great and popular location with rising rents and upside on price with renovations but also that will cost in the short term to improve the property. 

. - Both parties share the risks, including market fluctuations, project delays, or unexpected costs. - It’s recommended to have clear agreements outlining each party’s responsibilities, profit-sharing ratios, and exit strategies. 4.