Is there anyone in your local market you could take out to lunch who does flips?

Negative gearing kills the market for cashflow investors.

Do this quickly because some counties have a time limit on when you can appeal.I recommend you research the market for:- Comparable Property Sales- Condition of your property, including anything that may affect your property's value- If you are really serious, an expert appraisal may be worth the effort.

If things go sideways, you discovery greater rehab expenses, the market takes a turn for the worse, you can get in the red quickly. 

So the risk is lower, as long as the market doesn't drop 20% and stay that low for the next 3 years. 

I do not subscribe to the idea that you should expect negative cashflow UNLESS you want a specific property in a specific market that is more or less a second home situation. 

Welcome to the real estate hive Veronica.. are you open to exploring off-market listings through your network?

In my market the valuation with f/f non commercial financing is typically lower than the hands off cost of adding the ADU.  

What is your current BUY formula for properties in this market?

Are you investing in your local market?