With the high construction costs nowadays it's hard to add that much value, plus ADU's don't sell at the same $/sqft as the regular house, and there's not a steady readily available comparable properties to base valuation so the easiest method is replacement cost.I hosted a Meetup and wrote about ADU's on my website.

But the best method is what I already knew from being in sales: be fair, treat people how I want to be treated, and appreciate them.Steve

@Jeb Brilliant Were you able to get taken care of? 

Hi Anthony,Underwriting a 2-4 unit property is different than underwriting a 5 unit property because the valuation methods are different.

I understand this strategy isn't for everyone, so if that isn't an option the live-in flip method is also a good way to build up some more cash for investments.

If the property has two units and both units are occupied, then a new owner can offer cash for keys (the easiest method) OR evict the newest tenant (or the tenant who is not over 62 or disabled and there are additional rules - check the RSO handbook) to move into the unit.

.), how the title process/paperwork differ from buying a regular property, and the pros and cons of this method?

Update material costs based on what you saw at Lowes and Home Depot...but check this against homewyse as wellStart making nice with a contractor and ask to see their existing job sites.Use J Scotts method of going to Home Depot or Lowes early in the morning and see who is checking out at the contractors desk if you need a place to startWhen starting don't try to estimate by only looking at an MLS listingIf you're new the odds of you finding a deal on the MLS are rare.

With regard to purchasing rental properties in a different state site-unseen, there are alternative methods in doing so. 

If I price it according the cap rate method, I come up with 122000 Bank's highest bid is 70000I intend to BRRR this property, but not certain if I'm looking at a deal.  72000 purchase price (foreclosures in this area that sell to 3rd parties typically go for approxmately assessed value)Repairs 25000Buying cost: 500evictions/cash for keys: 1500Initial cash outlays: 99000Annual revenue: 22500Taxes: 1417Insurance:  1500?