I'm going to get a survey regardless, but I'd like to line all this up before I start spending on soft costs.The weird thing is I see other investors doing these DADU deals and I've never heard anything mention the above requirements / scenario. 

The letters and post cards are coming to my personal address but they don’t mention the property in question.

If a seller listed a home for $100,000 but was willng to sell for $94,000 as that was likely the FMV, it would be the same to him if he accepted $100,000 with a 6% seller credit or $94,000.I looked at the zip codes of lower priced homes in Memphis, Cleveland and Indianapolis and they appeared to perform betterMemphis38105 - Prices were $35,700 in 2016 and now $116,000(220%)38106 - Prices were $21,600 in 2016 and now $60,900(180%)Cleveland44108 - Prices were $34,000 in 2016 and now $59,800(74%)44104 - Prices were $36,300 in 2016 and now $60,400(66%)Indianapolis46201 - Prices were $42,900 in 2016 and now $149,000(247%)46222 - Prices were $39,000 in 2016 and now $127,000(225%)I should mention that I don't invest in Memphis, Cleveland or Indianapolis.

While it's not as passive as working with companies like I mentioned earlier it's still a great option.

@Katharina BormannHi Katharina, you need to put something in writing to the tenant with a reference to the lease clause to officiate the lease violation, as @Nathan Gesner mentioned.

I'm more in line with this.I do think we see closer to 5ish mortgage rates though within 12 months, probably 6-9 months but because of those same underlying reasons mentioned above.

I know some mentioned about developing banking relationships and I totally agree with that, so here is what you do. 1) Open a business checking account in the name of your LLC to hold the assets. 2) Deposit your cash into that account to fund the real estate purchases3) After owning for 60-90 days, talk with a local lender about a line of credit against the 2 properties at 60% LTV. 4) After about 30-45 days, have the line open to use if you need that liquidity that you used, but until then you are not paying 7% interest on nothing. 

Not mentioned, is recognition of other opportunities that a well-secured note may provide strategically, if placed well.

It makes you look like you’re asking for a new build, not an existing home. 2) Anytime you mention big items like HVAC/roof.

Anything above and beyond what I mentioned is a bank and its own overlays.