I would also ask them about cash for keys since I would initially offer the tenant this. 

I don’t know how much initial equity but if your guess is right 10 cents on the dollar is about right. 

It sounds like you have an un-permitted unit, which is essentially always a risk since there has been no notice to the AHJ that it exists and they can therefore initiate a code case to have it removed in most cases.

I think initially it makes sense to find properties that already have finished basements, in-law suites, etc. as converting those spaces to ADUs will be inexpensive and create a significant amount of rental income ($2,000/month+ in most areas close to the city).

Getting his/her initial reaction could open the door to an agreement that works for both of you.

Initially, I had listed it and found a buyer, but the deal fell through when the buyer had to back out.

It is about an 11% yearly return on my initial investment.

The culture shock hit us immediately, and we struggled at first—it wasn’t easy, but we were committed.Unfortunately, that initial investment didn’t pan out.

We initially spent about 20 hours getting my accounts set up and organized in Quickbooks.

We’re an MHC syndicator based in San Diego with a 15-year track record of strong performance.