Will depend on several factors like the type of property, type of tenants, your risk tolerance, other assets you own, your estate planning, laws where the property is located, etc.

They need to do all their due diligence including understanding the value that will be added by the ADU, the finance options available, the consequences of adding the ADU (rent control, property taxes, rental limitations, etc), etc.Good luck As with all things, it depends on the investor and the equity.If they are able to leverage existing equity to buy it under a HEL or HELOC, then they are adding equity with no out of pocket expenses, and adding immediate and longterm cashflow to existing stock.We like ADU's because there isn't more land being created in our city that is landlocked...but there is more density available to those with large lot under-utilized sfh.In my market, it typically costs $2 to add less than $1 of value on single build ADUs.  

I guess it always depends on how much money you have, what you want to buy and what your strategy is. 

They can depend on the person and the property along with a multitude of other factors.

"East" Nashville can encompass a massive land mass and it all depends on who you ask what "East" actually means.

Really depends how you want to structure it. 

The answer to your question is highly dependent on how many other projects your GC is working on at the same time.

Absence fraud, the success of the limitation will often depend on action which regard the entity as separate from the individual and other entities; separate bank accounts, attention to organizational structure, filing of entity documents, non commingling of funds, etc.  

Something to consider depending on your risk profile. 

If everything goes right I will be able to refinance and will have created 25% equity, or I may end up having to bring $10-20k to the refinance to get the 75% LTV depending on the appraisal, but even if that's the case it's still a great deal.