However, if you build the ADU and not condomise it, they appraisal will only view it as a SFR and give you the rent as SFR at 75% if lease agreements is being used.

The first appraised AND rented for more than projected.

Property: Single Family w/ Adu - Both spaces rented - Way below median rental - home is listed about 70k lower than appraised How does one acquire a property they know is a great investment when they can’t? 

Many lenders are requiring longer seasoning requirements, will ask for a second appraisal, and will cut value if the comps on the appraisal do not support the value of the property.

Each property has an appraisal, photos, videos, full inspection report, along with a full ROI report for each acquired property before they are marketed. 

In practice the provider entered into the purchase agreement, wholesells it at $125k to the investor, renovates it for $30k+ takes $5k to oversee the renovation, and voila - the property ends up costing the investor the same $160k that it appraised at.

I'm reducing the footprint and repricing.... finally a smart person. our floorplan for each unit we build is 668 sq ft and 2 beds for that exact same reason. people that Aren't in cheap markets don't understand. in columbus we face appraisal issues if we don't keep it as small as possible. 

You can go as low as $55k as long as the property can appraise for 75k or more 

I'd recommend pushing density to 3 or 4 they all finance the same. we picked 3 because of the 35' height allowance in our area. here is a rendering to help paint the picture. our target appraisal value is 550k on the first few and pushing them to more than 600k as we sell some or keep them but if you are the only one building multifamily it's important to highlight the importance of appraisal and selling or disposing of some assets to create comparable to be used. our market has very little 2-4 units built because of economies of scale we are the only builder doing this style and we control the full process and it is a high barrier to entry where we are at. we are able to build at a lower cost now than almost buying a duplex because they are so small. each one is 668 sq ft total of 2004 sq ft. 

It's not uncommon for us to have appraisals come in 10% or more over contract price.