Their goal is to eliminated group homes, half way houses etc, even STR, so check out the local zoning as well. 

However, if you don't know the layout here, it's best to get with those that do as properties change street by street and sometimes even on the same street.

Similarly, homes that have unusual layouts or less traditional features often benefit from full staging, as it helps buyers envision how the space can work for them.That said, even in more budget-conscious markets, full-service staging can still provide a significant return on investment, especially if the home has been on the market for a while or if it's empty and lacks warmth.

There are even ADU grants being offered.

The ADU would then be used as a long-term rental.Does this qualify as a “like-for-like” property exchange even though I’m technically not buying another property and does a 1031 apply?

Finally, even with a substantial discount, the house may not be worth it.

In your case, it sounds like depreciation would give you a lot of benefit even without qualifying as REPS.As you mentioned, the kids will get a step up in basis when they inherit the property. 

Finding the correct contact info is hard enough, but if your pitch is that they should sell cheap now, you're misreading the market.Multifamily properties are worth significantly less now than they were just a few years ago, and asking for a further discount due to property condition would probably result in a loss, maybe not even pay off the debt.

Sometimes even calling them as soon as I saw the inquiry.

I agree that is will be a gamble as to how well it will do.Also, ask the owner if they will entertain partial owner financing to keep from dragging family and friends into this risky business venture.Maybe even rent from owner for a year with right to sublease to see how it goes before committing to a purchase.