Hey saw your other post on this earlier and wanted to repeat for others to see as well: It's great you are recognizing this.

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I have also seen appraisers recognize that multiple ADUs by rule does not qualify for conventional F/f financing.  

It's great you are recognizing this. 

However, recognize there are challenges placing tenants at this time of the year.good luck

Having to “disclose” the work in the flip basically is mandating doing something that helps the buyer recognize the scope of the change which justifies the mark up.  

Despite the guru fed “misinformation” about all these under market price deals, they are actually very rare and require (1) the investor recognizing value that the seller and the rest of the market misses or (2) a seller with a need for an immediate sale and a buyer with the CASH immediately available to conclude a very quick closing usually forgoing inspections, financing, and other contingencies. 

And how will you recognize it?

Since you won't be able to recognize it as a valid rental if you're charging under market rent and you also expect to be covering any house expenses that are outside of her budget, this seems the best choice. 

Is it before you interview them?