If you’re using leverage, be extra cautious with your underwriting to ensure the deal still works at today’s rates.Economic Uncertainty: Inflation, potential recessions, or shifts in demand could affect rents, vacancy rates, and property values in some markets.Increased Operating Costs: Rising insurance premiums, property taxes, and maintenance costs can cut into profit margins, particularly for buy-and-hold investments.Regulatory Risks: Some areas are increasing restrictions on landlords, particularly short-term rentals.

I view it as instant leverage.  

Probably less time spent too and more educated borrowers over a wholesaler.YUP  .. 

Don't over leverage and carry reserves.

Make sure you know the value the ADU will add to the property before building the ADU. 2) the financing on an ADU is typically far worse than for initial investment property acquisition or is often not leveraged by the ADU (HELOC, cash out refi, etc).

Upon further investigation, I found several more properties under similar circumstances.At first glance, it seems possible that these properties were either gifted to the nursing home by former residents or claimed as repayment for services rendered.I’m new to real estate investing, I’ve been in the education phase for the past 2-3 years.

Just to give you an education on the market -  the price of a good investment home in Phoenix is around $400K. 

@Justin Jefferson These forums are a free REI education.

I’m wanting to be prepared and educated since I’m new to this and looking for advice.

I'll leverage accelerated depreciation for the tax benefit in the near-term.