Realize that would be based on your efforts, versus the current sellers, but you would be willing to pay above market if you plan to make a lot more by doing the value add.I prefer to pay below market, but if the zoning is hard to find, if the potential value add is great, or the finance deal is wonderful, then I would pay above market. 

The house is sitting on the market under the R-2 Zoning code as a single-family house not as 2 o 3 units.

- Are there any red flags or cautionary aspects I should be aware of?

I feel that stories like this help keep everyone safe and promote doing good business by educating the public on red flags to watch out for.  

N these markets the ADUs in SZ zoned areas typically are given a value by appraisers far less than the cost to add the ADU.  

@Matthew Scott The first question would be to check the zoning.

Raleigh zoning allows a lot more flexibility now thanks to many changes.

What would happen in a situation where if the adu doesn't add the necessary valueCan you DM me some comps in a single family zoned areas that reflect this?  

If you feel these red flags are irreparable, ask for concessions or tell them to peace.

The permit will ensure 1) that this work received maximum valuation 2) that it is not red tagged later 3) that the work is likely done correctly.