Has a brand new roof and zoned for adding 3rd unit.Property 2 is in a larger suburb area with about 80K population and in a county of 2 million.

It is one reason that leveraging under utilized zoning to add a unit is often a better option than the ADU addition (the appraisal associated with ADUs being the other).You can always search for the other finance options (owner financing, rent to own, commercial loan, etc.).Good luck

Additionally, it raises red flags in underwriting if you were to originally acquire a single family home, and then move into multi-family after that.  

.- Educate yourselves: Learn about local market trends, zoning laws, and permitting processes.- Set realistic timelines: Account for your full-time jobs when planning project schedules.- Budget carefully: Include a contingency fund for unexpected issues.- Focus on high-ROI improvements: Prioritize renovations that add the most value.- Document everything: Keep detailed records of expenses, work completed, and agreements.- Consider liability protection: Look into forming an LLC or other business entity.Starting with cash is a smart move to minimize risk and learn the process.

Embarrassing, because my seller did exactly that, without any of my loan details, and generated the exact same letter I had given to him.Lessons learned: gold cross = red flag, "have a blessed day" = "see ya"Date of experience: June 16, 2023

The inspections could include, but are not limited to, building, zoning, VDOT, fire, and health department.

Any thoughts or advice greatly appreciated.First find out what it is zoned for and if it has water rights. 

If this property had been in one of the areas zone for more density they would surely have done a normal "Seattle six-pack" of 0-lot-line townhouses but instead they short platted 2 lots to still in effect end up with a six-pack even though in an area not zoned for it, at the cost of having to sell units as condos and deal with other ADU limitations (e.g. 1000sf limit).In 2023 the State mandated Seattle-style ADU regulations across all urban growth area cities/counties, going even a bit further (2 of any combination of attached/detached allowed).

Unless the comparison includes permit checks, zoning check, walk through of the property prior to the sale (to see interior of unit), disclosures, plumbing and foundation inspections there is no way to compare values and having purchased mostly off market properties I can state with fact that the value is not easily discernible. determining a property has a failed sil plate or needs 100’ of new sewer run is not easily identified.  

This would be our first rental and I think it could be a good opportunity long-term, but it feels like there’s some red flags here.