For our ADU (garage conversion), I am handling the design/engineering and then selecting a final contractor once its permitted and ready to go. 

What made you interested in investing in this type of deal?

You'll have tenants that don't pay, damages made, and potentially other disasterous situations occur on your properties. 

* What is your average make ready cost for the owner?

In the Bigger Pockets free book, "Real Estate Rewind", as one of the 11 co-authors I wrote about one such Tax Sale purchase and made money but not enough money to warrant the risk involved.

Just before Thanksgiving the seller was ready to talk.

We were initially looking out of state for a potential move and or investment property just because the property taxes without being able to homestead, plus high cost of insurance, and harsh weather on homes made me feel like it might not be worth it.

I think it would be better just to stay on good terms and let him know you will contact him when you are ready to sell.

If your goal is to grow faster, buying rent ready properties isn't the usual way to do that if you have limited funds to start with.

It's a great way to showcase the improvements made and helps appraisers not miss stuff.