I'm also in Buffalo and have a couple properties that used to have additional structures on them.

Can you provide an address where you believe a refi appraisal valued a single ADU addition at the same cost as the hands off addition.  

The only time it gets dicey is when its the ultra rich because yes they can spend the $ to keep it hidden. 

Additionally, educate yourself on disqualified persons and prohibited transactions.  

Stop hanging out with your deadbeat buddies who spend all day drinking, talking sports, and otherwise wasting away.

STR, MTR, it doesn't matter, you can't house people there and would be in a severe insurance liability if something were to happen in an unpermitted addition or renovation.If it was permitted, you would use Furnished Finder for MTR.

We will able to make light to medium renovations and have additional team  members available for more complex renovations

Don’t waste time working on impossible or near impossible deals just because you have extra time; spend that time in efforts to find doable deals.2.

I also put them under additional limitations (e.g. occupancy limit of one person per bedroom) to offset the risk.

I'm not a home inspector, but I point out many items to the buyer, so the buyer enters into the purchase agreement with eyes wide open before spending money on a home inspector.