The main issue is that to do the ADU you have to spend so much bringing other items up to code like electrical, plumbing, lighting (windows) and egress.

Which may bring some market volatility, and us Skeptical Investors should be aware.Why?

Well, yes, some properties may require complete work, but others may just need cosmetic things to bring them back on the market.

Or are you using an SBLOC to bring $500k and then bringing another $200k in cash out of pocket? 

Definitely will bring more jobs and with that the workers' families.

@Troy Smith might be worth having a local agent take a look at your comps with a CMA and then weigh out whether your 'spring market' will bring better sales comps, or if the sales from the past 6 months will get you the value that you are looking for.Here's a quick go-by for seasoning requirements for much of the investment property lending world.

Is it worth bringing in my contractor first to see how difficult it would be or should I call the gas and water companies first?

Again, that same property might not bring $50,000 resale in a lousy neighborhood.  

I am happy with them, I think they bring up value to investors, still I believe many of their deals don't meet my standards ( do your own diligence and run your numbers!). 

My plan was to purchase a lot and build a foundation, bring in a doublewide/manufactured house. have it placed on foundation and have a structural engineer reclassify it as fixed real estate. then, I would refinance.