See image below with more details.

Quote from @Cody Caswell: Quote from @Bruce Woodruff: You're correct that getting every detail involved right from the start is critical!

Selling for $380k means an $80k taxable gain at long-term capital gains rates (0%, 15%, or 20%, depending on income).The $80k HELOC used for personal debts doesn’t affect your taxes.A 1031 exchange could defer taxes, but you’d need to reinvest in another investment property, not a home for your mom.

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.DM us if you’d like to discuss this logical approach in greater detail!

Most long-term lenders will use an AMC to select the appraiser.

I believe they might still able to buy new properties (I have a Canadian passport so it doesn't affect me and so I haven't followed the details).

Visit with people there and you'll get a more detailed look at things from people actively working in the areas.

Can you please share your CPA and Prefab ADU company details?

You can call suppliers, but may need very specific details to get a meaningful number.

What about a duplex in Sav like this: https://www.realtor.com/realestateandhomes-detail/1514-Augus...?