Profits do not justify their effort even with the ADU addition in this case typically not being hands off .Here is a list of things that make ADU additions a less than optimal RE investment but the value added and starting with tens of thousands negative is a big one that needs to be well understood. 1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

Putting up with the daily life hassles in CA doesn't justify being near the beach that you don't have time to enjoy.

I would work with the lender and put together a well thought out Reconsideration of Value (ROV) with better comps and detailed reasoning to justify the higher ARV.There are lenders that don't do appraisals for hard money loans so you could try that in the future to avoid these situations. 

5 units isn't enough to justify paying for PMC software.Check out all the free options.

Do you have any of these that can justify the price so prospective tenants can see that the net cost is equal? 

However, consider whether the upgrades will help attract higher-paying tenants or reduce vacancy rates, which might justify doing the work beforehand.

Only "A" markets where 10 x 20's rent for $130 or higher will be able to justify the increased building costs.

A standalone ADU is almost always going to cost more than doing an addition, so the value added or cash flow increases will have to justify each.I work with a team of investors who will buy SFR homes then build a new ADU on the lot and add a separate drive way and meters for utilities in North Texas. 

I knew I was dreaming and it was a way to justify the 1k+ I spend for that week-end.

I do worry a bit that the market could shift downwards, but I think I justified it to myself by saying 'in an economic recession, people will still travel, they just won't want to pay $800 a night to stay at the Grand Wailea.'