if there's no major rehab, it usually means you can't buy it at a deep enough discount for a BRRRR to work. 

No, it's not cheaper because you get discounts through these companies.   

Certainly not the more expensive and exclusive neighborhoods.  

Would any new ADU sq ft add $450 / sq ft to the property value OR would it be at a discount because it is an ADU?

Unfortunately looking like this specific deal likely won't pan out; seller is definitely not motivated to offload quickly/discounted based on their replies.I found a realtor through BP who I'm now working with to find a property, so progress in the right direction!

I live in Indianapolis and work exclusively with OOS investors so I'd be glad to connect and discuss this market whenever you like.

But tax wise just here to note if you buy a 4 unit as a primary when you go to sell (if you meet the requirements) only 1/4 of the gain could be excluded under the 121 primary home sale exclusion.

However, if you inherit it through her estate, you receive a stepped-up basis to its fair market value at that time, reducing tax liability upon sale.Gifting it now has no immediate tax consequences unless its value exceeds the $18,000 annual gift tax exclusion (2024).

Converting properties to multi-family is considered extensive rehab and those programs are a little more exclusive than the standard bridge loan programs. 

I started this a little over 3 years ago now.I think thorough research, and data will help make educated decisions, and the real winner in this market is finding a mix of at least 2 of the four:  Off market discount, fixer upper, lowball on market offer, or seller financed/subto.Also if you are planning to do it in a populated area I also think its good to take on the idea of not cash flowing for a few years, and also considering air bnb if you want to reduce costs even more.