Also, the second unit is considered an Accessory Dwelling Unit or ADU and I cannot re-zone this property or have the basement as a 3rd unit.

If someone is going to put a foundation and accessory building in their back yard, from an investment perspective, it makes sense to build to highest and best use by maximizing the square footage and maybe putting in a second half or full bath.  

So, if I win the bid, and did a rehab, the irs would only covet the purchase price, or also whatever upgrades I did to the property as well?

A good new plow would run $4-8k depending on what you scholar and accessories.

Finding investments that fit your lifestyle and marriage is key....maybe just a single family with an accessory is a baby step to see the rent checks coming in...

They are called "accessory dwelling units" and are only allowed in properly zoned areas.

Ultimately, I hope to achieve that coveted 7 Figure income, but I know that will not happen unless I have RE in my portfolio!

But I am in no hurry to give up the tax benefits of buy-and-hold real estate: The ability to write off the interest, insurance, property taxes, 1/27.5 of the property, 1/5 of the appliances and accessories, and 1/15 of the landscaping, every year.

I have a different method than Michael Paris on this one, I give out an rfq to the lumber yard, I have the architect call out types of wood, bolts, and other accessories (osb, doug, etc) to obtain apples to apples bids; on my rfq I put any miscalculations in quantity is going to come from their end. price lock for 2 months.

Some communities up north allow "Accessory Dwellings" on SFR if you want to do some house hacking.