Your biggest problems here are going to be how to properly qualify someone, what to do if someone stops paying, footing the bill if you have a big repair item, finding quality and reasonable vendors/contractors to fix things, and keeping track of payments.If this isn't you, give me some more context of where you're at and I can give some better insights. 

That will allow you several benefits like adding the square footage to your property, having it appreciate in value as more ADUs are added to the neighborhood, legally rent it out within the city's parameters around long-term, mid-term, and short-term guidelines, and feel good about your investment.

Still trying to get a lender squared away with the cash out refinance process.

In the first 2 minutes of setting foot in the house, I could tell not a whole lot had been done to the property.

You can also create a basic scope of work and get ballpark estimates from contractors or use cost-per-square-foot averages for your area.To determine ARV, look at recently sold comparable properties in the area that are similar in size, style, and condition to what your property will be post-renovation.

Most hit all the bullet points excepting:Spending $175 on renovation and adding square footage or unit count does NOT miraculously convert to valuation.

How many br, ba, square footage?  

In regard to the best interest rates, the market is pretty fragmented so it's best to check around wherever you are looking to establish your foot print. 

Hi BP community,I’m an out-of-state investor currently looking at a specific property in Kansas City, MO, in the Eastwood Hills East and Coachlight Square area (northwest of Raytown).

Aside from the standard BR/BA count and square footage, I always focus heavily on the listing pictures for any comps I pull in my area - finding a comp that's as close to your property's condition and finishes will give you the best apples-to-apples comparison possible.I also wanted to second @Tim Swierczek's input: nobody in Minnesota likes moving in the middle of winter.