No financial information is taken at face value, I give 50% confidence if they show their books, that may go up after examination but often it's irrelevant to me.As mentioned, if you put people on the spot, that may lie, so don't go there, find out for yourself.

Accompanied by all the nerves and excitement you could imagine.

Somehow, I got up the nerve to speak with her and then go look at her house.  

I will examine my own equity build up a little more closely.I think I have have been somewhat unclear in my first post which I apologize for. 

One thing to examine and account for = age of homes.  

Examine the Condo Bylaws and Declarations. 

That turned out not to be true, but it required a fair amount of work on my end getting the proper guidance and resources, and then mastering those tools so I could very successfully probate the estates entirely alone.Ironically the attorney who thought he was going to probate the estates snooped through all my filings at the probate court and even had the nerve to bill me for a couple hours of time for having done so.

This should have been part of your due diligence, to review and examine the current leases.As Nathan mentioned above, most often times it's better to let the current tenants out, make your changes, and rehab, then start fresh with tenants willing to pay market rent.  

Rental real estate is placed in service on the day that both of the following happen (1) the unit is in habitable condition and (2) the unit is advertised as available for rent.I think you and your tax professional need to examine whether the occupants of the main house had use of the ADU either formally under their lease agreement, or informally.

Regarding your suggestion about looking at the Midwest, I have to admit that it's a market I haven't examined yet, but from your description sounds promising.Re: stock investing, I am self educated and previously traded primarily in options.