What are the red flags and concerns?

In general ADUs in Sf zoned areas are a poor investment and JADUs are an even poorer investment.  

Class E (war zone) is my favorite.

Here is also a map of flood zones in Janesville.

Do not want to put anymore capital such as a $140k cost of foundation further putting us in the red so considering selling this money pit as is or holding on for creative ways to make this house profitable.

I've talked to Morrison's zoning department recently.

., the best way to find out this info is call the zoning department for the city or county depending on where the property is located.I am assuming you are looking at a property with a home already on it thus the ADU's.

Hello All, I am analyzing my deal and here are the detailsSmall Town , Couple of big Manufacturing plants and HQ for 1 of the fortune 500 Client.  Building : 1878 /2008 Renovated.Price : $600000 Asking Total Tenants: ...

The area was designed as a retirement zone and it still has that reputation.

Example: A backsplash that is a different color from rest of the kitchen (a warm green or red against white and grey walls), a tile that has a unique look or pattern to it, crown molding on cabinets, or a unique light fixture.