Would any new ADU sq ft add $450 / sq ft to the property value OR would it be at a discount because it is an ADU?

This also depends on how are you calculate cash flow and what you're using to discount for expenses.

That's a significant discount --- I wonder if they are seeing a decrease in homes posted.

Distressed properties are real estate assets that are usually sold at a discount due to financial or physical distress.

Can we get a discount?

New construction properties can qualify for significant insurance discounts, but otherwise, I generally expect insurance in this area to run a little over 1% of the property’s value if it’s in decent condition.Feel free to DM me if you’d like a good insurance contact to shop around for a better rate.

Due to current interest rates, many CAP rates are much lower than they should be and usually there is only so much price discount a non-delinquent seller will be able or willing to offer.

Just underwrite a refinance assuming about 30-36% of the money you will receive goes to refinance closing costs at worst, and find discounts when you can.

Large down payments or extreme discounts from sellers would be needed to reach cash flow neutral stages. 

My number 1 tip would be to go off market and find owner that wants to sell at a discount / prefers speed and convenience.