Cities usually don't care if the OWNER lives in the basement, just tenants.You could use the extra income to offset cost of finishing basement and more.

Can you please advise me on how to purchase an out of state home where the owner has a reverse mortgage on it? 

Recognizing its strategic location behind two of my existing investment properties, I approached the owner directly.

Can someone please let me know the mechanics of the recording process on an owner-financed deal?

After visiting the property and assessing its suitability for an ADU, I negotiated directly with the owner, emphasizing my plan to enhance the property’s value.

At the end of the day, the sellers looking to transact in creative finance transactions are normally the owners of real estate that cannot sell easily in an arms length transaction or are gouging  the buyer on price.

Costs will be far lower, but an owner/operator would still get the benefit of staffing and material efficiencies. - You could consider owning those as rentals and leasing out to the businesses. - You could sell the land to an owner/operator who wants to build assisted living. - You could own and operate those yourself and just hire great management or bring in a management company. 

The hope is to build experience and open more doors in the future for new builds.I also just had lunch with a banker on Friday who said they have been opening up and relaxing on real estate again…for everything except non-owner occupied construction - that is still a no go for them.

@Cody FriedrichAssuming you bought the duplex in Indiana non-owner occupied, house hacking is a completely different calculation (in my opinion). 

Current building code requirements and local amendments should be considered forrebuilding the fire-damaged portion of the residence.The Engineer shall have no liability to the Owners, or to others for the acts or omissions of theContractor or any other Persons performing work on the project, or failure of the Contractor tocarry out the work in accordance with this letter, except where specifically inspected andapproved by the engineer and discovery of defect is possible within the normal ability or standardof care for the industry.This report is based on a diligent visual inspection of the referenced areas.