But possibly do a prom note for an additional 50k after about a year by pulling out equity.

Updated the kitchen, bathroom, and pulled permits to expand an additional bathroom/walk in closet.

They are not experienced real estate investors, they are retired and looking to create additional income. 

You will never get that back in terms of additional cash flow

Since they are considering renting their properties out, sell them on the concept of getting consistent cashflow from you - without the hassles of being a landlord.You will then need to make sure you can make those monthly payments EVERY month in addition to do remodels.

The big issue is building a single small residential unit is the most expensive residential development.Here is a list of why adding a single ADU in single family zoned areas 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.

I'll provide some additional facts based on your response, but don't want this thread to spiral into a back and forth dialogue.

In a nice suburban neighborhood a large bathroom with a standalone tub can add a lot of value, but the addition of a second bathroom is also important.Do you have an option of making a slightly smaller master bathroom and having a half bath or smaller bathroom with shower stall in the other bedroom? 

My primary experience recently w/ Atlanta wholesalers has been mispriced properties due to the additional margin added.

For money judgments, in particular, it’s often worth consulting with an attorney to make sure everything is handled properly and legally—especially when you’re operating remotely.Best of luck with the process, and definitely reach out to the Facebook group for some additional insights!