There aren't many co-ops in Southern California, mostly in LA or a senior community in Orange County, but there's not much of a discount between condos and co-ops - at most, 10%.What is your source of the 10% difference data?  

Hosts can get involved by either donating a portion of rents from their payouts or they can offer housing at a discounted rate.

After which they invested $190k for $10800/year return or 5.6% (not even discounting for the 2.5 years to recover the initial negative equity).  

Never heard of Investor's Edge, but this sounds like a straight up scam.

I'm working with an investor client who is particularly interested in fix & flips. we've come across a number of lender owned / HUD owned properties with steep discounts.

I believe it is completely reasonable to have a clause in your lease that places a cap on utilities with any overage (proven by a bill) being the responsibility of the resident.Our clause states that any electrical bill (we don't have gas, and water has never been a problem) that is over double the same month's bill from last year will have the overage assigned as a fee.It is important to keep your bookkeeping straight if you do assess a fee.

., paint, flooring, or perhaps a kitchen or bathroom remodel), buying it at a decent discount, and putting down at least 25%.

Would any new ADU sq ft add $450 / sq ft to the property value OR would it be at a discount because it is an ADU?

This would be from the same carpet company I used when I fixed up the house, so not trying to gouge them or anything.I'm looking for some guidance in this situation, pitfalls I could run into, or just straight up illegality.

Just straight information and super friendly atmosphere.