And as investors we should know this, but always anticipate higher costs and longer waits.EXAMPLE Breakdown of Costs:Plan Purchase: $1,500Permitting Fees: $2,500-7,500Site Preparation (grading, utilities, foundation): $20,000–$30,000ADUs require separate utility connections for water, electricity, and sewer but you can tap into existing utilities at the primary houseIn Raleigh you CANNOT split lots fee simple, so setting up completely separate utilities would not allow you to section off the ADU as of nowYour ADU must be on a permanent foundation (no wheels, no ability to move the structure)Construction (labor and materials): $100,000–$150,000Low-grade: $150–$180/sq ft averageMid-grade: $180–$220/sq ft averageHigh-end: $220–$250/sq ft averageLandscaping/Finishing Touches: $5,000Total Estimated Cost: $125,000–$200,000You could easily spend $200k+ with super end high finishes, custom designs, complicated sitework, adding a second story or more sqft, etc.

We bought a home built in 1900, insurance water damage coverage is 10% of the dwelling limit. 

But your main killers; road access, water access, fire hydrants, flood plain, storm sewers, Storm ponds, road surface requirements, etc. 

The pool needs a new liner, and I do not know if the pumps work because there is no water in the pool.

In HI there are leasehold properties, cesspools, water catchment, and Lava Zones (on the Big Island). 

Think of all the horror stories about tenants maxing out the heat with their windows open during the winter, deliberately running water bills up, etc. 

Hi all, my LTR (Boston, built in the 1930's) has some cracks in the basement walls that I didn't think were too serious (owned for 10y, some water and flaking but mostly dry).

I can appreciate your frustration and have worked with hundreds of investors over the last 20 years navigating the more complex waters with respect to Self-Directed Solo 401(k)s.

I work with a lot of MTR investors and what I am seeing frequently with multifamily acquisitions, particularly with new investors, is that they often test the property just like you're mentioning, as a way to dip their toes in the water and see what works in their area and for their personal style.

The snake behind the water heater during rehab.