My budget is in the $200-250K range.Please feel free to let me know if additional details would help, and thank you in advance for your time and advice! 

Not only do they not repay funds, they claim we owe them additional funding for renovations that never actually happen. 

Here is a list of issues with adding an ADU:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

This is due to bonus depreciation which allows taxpayers to deduct 40% of qualifying property costs in the first year, in addition to regular depreciation for new construction and improvement.

How do you finance the tear down do you add it to construction?

Am I getting greedy to ask for an additional seller credit at closing to help offset some of repairs needed?

What do you mean you are paying $400 additional dollars more than what you are paying now?

I was interested in something like owning a rental property as a way to generate some additional income. 

Quote from @Zach Howard: Quote from @V.G Jason: Quote from @Zach Howard: @V.G JasonTo someone just starting out (only option of OOS) who can get access to 200k, but no additional financing at this time but an additional 50-100k max in reserve cash, where might you recommend they start - markets/property type/strategy?

I also make sure to specify in the lease agreement that I need proof of coverage before move-in and that the policy should name me as an “additional interested party.”