Then I will not offer no more than 65% of the value if the seller doesn't go with the 50% offer.

It's hard for a seller to grasp as they see all the blood, sweat, tears and efoort as being valuable, it is to a point, but no more than yours would be.I lean toward the licens issue as well, she may not have a financial liability arising yet, usually the regulators will issue a cease and desist demand, giving so many days for compliance before they slap fines on her, but if she has been fined you can find that and likely you'd know as she'd be tapping the books for money.And, as Jon mentioned, you may need to find a broker before you qualify to be a broker, which means you'll be splitting the fees!

The ARV of this property is no more than $38K but there is not much of a retail market in this area.

Without seeing the house I knew I could offer no more then $70 - 80k.

As I type, my time is only worth as much as the dirt outside, no more, maybe less since the dirt has a value I guess :-)Saving money on a project is the same as making money in my book!!

If you move out, no more ADU.

They will all be small, 100 sq ft bedrooms, and the whole building will be no more than 2,000 square feet total, which means that living room and kitchen will also be on the smaller side.

For a house built in 1950, 1200 SF that will sell for 120k, I would typically pay no more than 50k.

Stay away from water damage, there is no way you can figure that expense behind the siding, behind the sheetrock, I got a feeling you know that4) buy from people who have to sale, estates, divorces, partner fighting etc5) get your money from a small bank where the owners of the bank will know your name, no more than 4-5 branches. big banks will get lower FOS appraisals almost everytime and then could turn you down a day before closing (both have happened to me).

No more lugging all that stuff from point A to point B when you move.