Hello Kilroy, When it comes to appraising ADUs it will basically be left up to the appraiser.

I think it depends on the market.. they approached me on a furnished rental I had in Vegas (Summerlin gated community A class)  We got basically double or a little more of the normal rent..

Part of that you can justify because of the necessary repairs, but overall higher price points appreciate differently.The median home price has basically doubled in Milwaukee from about 160k to 320k in the last 10 years.

My goal is a win-win situation, and it's basically for him to do owner financing and rent. 

I responded to your DM, but it's basically what @Chris Seveney said.

Ok, so basically if you have your 25% downpayment you can just go buy any property off the MLS.  

What they are basically selling is that we bought $150k worth of appliances/cabinetry/carpets etc with the property.

Even a typical water heat replacement would set you back signficantly.There's plenty to the puzzle that i am unaware of but with what you've outlined here i would consider passing on the property.you know you need managementyou know you need to remove at least one tenantyou know cashflow is meager after considering management.i personally wouldn't recommend a client take on the risk for such a paltry pay out out of state.Even when considering long term appreciation the average amount of headache one assumes with a property will bog you down before the long term play pays off.

But as I got more experienced I learn less and less from most forum posts are you know most basics already.

If it's your first LLC, though, it might be wise to work with an attorney to guide you through the setup process and some basic steps to take afterward.