You might find that installing a mini-split system, properly insulating, and ensuring the finishes match the main home’s quality will make a difference in how the appraiser views it.

In normal times i would think selling is typically the smarter financial choice, but at the current time keeping may have a significant finance (due to low interest rate) advantage.Here is a list of why adding ADUs in my CA market is typically a poor RE investment:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

Poor personal finance skills.

It tries to do too many things and poorly at that. 

From those experiences, I know that the money saved by going it DIY or with a poor company is FAR LESS than the money lost through bad management.Huntsville is a great area, but smaller investors might be priced out of that market.

Even with the reduced rates, my cash flow is poor for my equity position (i would still be cash flow negative at today’s rates).  

It's very important to have a good PM and not go cheap or there's a high chance your rental will get poorly managed and you'll lose money in the long run. 

Reasons a Property Owner Can Terminate the ContractSubstandard work: If a contractor uses poor workmanship or uses poor quality material that was not mentioned in the contract, then the owner has the right to terminate the agreement.

Roof, HVAC, sewer, etc.Has the property been poorly managed?

If the lack of cash was due to poor operational management, I would not give them a dime more.