Also, look for off-market deals, as they often offer less competition and better margins. 

In commercial real estate, the property value is often based on the income approach, meaning it’s largely determined by the Net Operating Income (NOI) and the market’s cap rate.

It’s why you’ll often hear about keeping adequate reserves.

My wife has an acquaintance in InvestHer that does flips in beach areas of Orange County that often adds ADUs.  

Laws also change often so you have to stay up on those changes.

Here are a few tips that might help as you get started:Market Analysis: Since you're open to out-of-state investing, look for markets with steady population growth, job diversity, and a balance between rent prices and local wages—those factors often hint at stability and demand.

Cash Payment: Paying cash for improvements is often the most economical way.

There is way too much liability in placing this type of tenant.

These loans often have more straightforward qualification requirements for investors with multiple properties but may have slightly higher rates.Cash-Out Refinance on Your Single-Family Rentals: If each has around $70k in equity, a cash-out refinance could provide some capital for the down payment, renovation costs, or even help you buy the 4-plex outright.FHA 203(k) or Conventional rehab loan: If you’re planning to occupy one of the units as a primary, FHA’s 203(k) loan or a conventional renovation loan could help with purchase and rehab costs at lower interest ratesPortfolio Loan: Some local banks may offer portfolio loans for investors with multiple properties.

The neighborhood often determines what you can do.